Interaction between the proprietary base theory and subrogation—‘It WAS mine’, ‘It HAD BEEN mine’, but IS it yours?

Abstract

Abstract The law of restitution has developed rapidly in recent decades. Many concepts have been created, refined, and diminished. The proprietary base theory is one of the concepts that is increasingly marginalized. This article examines this theory and advocates its rejuvenation. By analysing the decision Menelaou v Bank of Cyprus UK Ltd, the interaction between the proprietary base theory and the principle of equitable subrogation is dissected. This article concludes that the proprietary base theory can clarify uncertainties in subrogation cases involving proprietary claims and remains an important tool in relevant litigations.