Equity LG/WS 10 - Implied trusts and property disputes

  • Created by: Emma13
  • Created on: 22-06-18 13:20
What will a resulting trust involve?
may involve land or other property Automatic resulting trust: transfer to volunteer and express trust intended but defect in declaration of trust
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What is a constructive trust and when does it arise?
many types, one example is common intention constructive trust. Arises in relation to land.
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What is proprietary estoppel?
may give rise to an interest under a constructive trust not an implied trust. Equitable claim allowing acquisition of an interest in property.
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What is s53(2) LPA 1925 do?
Implied trusts over land
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What is a presumed resulting trust?
A transfer assets to B/A pay for some/all of assets but title held by B, either case no obvious evidence of A's intention; presumed B holds assets on RT for A. B has burden of proving not RT
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When does this presumed resulting trust arise?
In relation to voluntary transfers of personalty not land but chattels/ shares
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What happens with voluntary transfers of land?
There is no presumption of resulting trust
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What does s60(3) LPA establish?
‘in a voluntary conveyance a resulting trust for the grantor shall not be implied merely by reason that the property is not expressed to be conveyed for the use or benefit of the grantee.’
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What do Lohia and Ali v Khan establish?
If it doesn’t make it clear in conveyance it’s a gift, in this situation you don’t presume it’s a resulting trust.
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What is a purchase money case?
A has paid some/all asset and it’s in B’s name There is a presumption B holds the house on a resulting trust for B + A Doesn’t make a difference if land/personalty
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What did Curley v Parkes establish?
Only payments towards the purchase and made at the time of the purchase give rise to a purchase money resulting trust
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What did Stack v Dowden establish?
Shares of cohabitants are more likely to be determined on the basis of constructive trusts
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What did Laskar establish?
Resulting trusts are still relevant if the property is purchased as an investment
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What is the presumption of advancement and when does it apply?
presumption of gift Applies instead of presumption of resulting trust in some circumstances. Presumed A made gift to B. A has burden of proving it is Not a gift.
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When does the presumption of advancement apply?
Applies on voluntary transfers and provision of purchase money
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What did McGrath v Wallis establish?
POA - By father to child
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What did Bennett establish?
POA - By a person in loco parentis to the child (acting as parent - financial responsibility)
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What did Peititti establish?
POA - By husband to wife/ The presumption of advancement is weak and easily rebutted
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When else is there a presumption of advancement?
By fiance (male) to fiancee (female) (if marriage occurs)
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What did Sekon v Allisia establish?
No presumption of advancement between mother and child.
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What did Re Cameron establish?
obiter, suggested modern times mother could have responsibility of child.
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What did s119 Equality Act 2010 establish?
will abolish the presumption of advancement from a day to be appointed. Not yet in force Only abolish presumption of advancement in relation to transfer/ purchase Occurring after section comes into effect
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When can the presumption be rebutted?
Evidence to rebut the presumption? donor/purchaser has burden..is the evidence admissible?
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What did McGrath v Wallis establish?
Presumption of advancement rebutted by showing there was no gift with evidence
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What did Shephard v Cartwright establish?
Evidence admissible? Timing: evidence of transferors intention must be done from before or at time of transfer/ purchase
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What did Warren v Gurney establish?
Presumption was rebutted by evidence of Mr Gurney’s intention i.e evidence suggesting resulting trust not gift
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How can someone establish an interest under a common intention constructive trust?
Under a constructive trust a claimant will obtain an interest if it can be shown that: There was a common intention between the parties that both parties were to have an interest; and The claimant acted to her detriment in reliance on that CI
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What did Lloyds v Rosset establish?
Lord Bridge: common intention can be express or inferred common intention
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What is method 1 for creating a CICT?
Express common intention (actual discussions before or at time of purchase or exceptionally at a later date) and Grant v Edwards Detriment - claimant acted to his detriment or significantly altered his position in reliance on the common intention.
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What did Lord Bridge Lloyds Bank v Rosset say?
“It will be necessary for the partner asserting a claim to a beneficial interest..to show that he or she acted to his or her detriment or significantly altered his or her position in reliance on the agreement”
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What was said in Grant v Edwards per Nourse LJ?
“Conduct on which the claimant could not reasonably have been expected to embark unless she was to have an interest in the house”
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What was said in Grant v Edwards - Wilkinson LJ?
“Any act done by her to her detriment relating to the joint lives of the parties
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What is method 3 of creating a CICT?
Inferred common intention and Detriment Financial contribution made by claimant
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What did Lord Bridge say would amount to inferred common intention in Lloyds v Rosset?
“Direct contributions to the purchase price by the..(claimant), whether initially or by payment of mortgage installments, will readily justify the inference necessary to the creation of a constructive trust. It is at doubtful anything less will do'
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What did Barroness Hale say in Stack v Dowden about Lord Bridges approach ?
Too restrictive - bit harsh
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What did Le Foe establish?
Inferred common intention from indirect contributions to mortgage. Where both C and D’s funds needed for mortgage and other household expenses.
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What did obiter comments from Stack v Dowden say regarding Le Foe?
Le Foe should be followed instead of LvR
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What did Stack v Dowden establish regarding quantification of interests?
Share = what parties agreed or if not What court think parties intended in light of their whole course of dealing with the property
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What were the factors identified under SvD with regards to what the court thought was fair?
Advice/dicussion at time of purchase/purpose house acquired/nature of relationship/children?/how financed?/how financed arranged?substantial improvements?
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What did Jones v Kernott establish?
Obiter, share is = what parties agreed or if not What the court think is fair in light of their whole course of dealing with the property
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What is proprietary estoppel?
Assurance by owner (A) that B is to have an interest in A’s property and B acted to detriment in reliance on this so that it is unconscionable for A to deny B’s interest.
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What did Thorner v Major establish?
Assurance , reliance and detriment - Unambiguous Intended to be relied upon
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What did Gillet establish?
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What did Jennings v Rice establish?
Remedy;What might B get? Court may make a range of awards Court may consider: specific discussions, if any Proportionality between expectation and detriment
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What are the quotes from Thorner v Majoy?
‘A representation or assurance made to the client’ and ‘Reliance on it by the claimant’ and ‘Detriment to the claimant in consequence of his (reasonable) reliance’
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How do you satisfy the equity?
JvR-Remedy should be the minimum required to satisfy the right
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What did Joyce v Epsom establish?
‘Fair and proportionate’ to satisfy equity
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What do order to satisfy equity include?
Transfer of legal estate Right to occupy Monetary compensation Nothing
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What is passive assurance?
Legal owner stands by while claimant acts to his detriment, this can relate to future rights as in Gillet v Holt
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What did Gillet establish?
Need not be financial Something substantial; Robert Walker LJ emphasised the prevention of unconstitutionality in the essence of PE
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What did Taylor Fashion establish?
Oliver J restated the requirements of PE 'it would be unconscionable for a party to be permitted to deny that which knowingly or unknowingly, he has allowed or encouraged another to assume to his detriment
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When will a estoppel arise?
No estoppel will arise unless the C can establish that the legal owner of land made a representation, or created or encouraged an expectation that he was presently entitled or would become entitled, to an interest in the land
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What is passive assurance?
His silence and failure to disabuse the claimant of his belief that he entitled to an interest in the land
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What is active assurance?
assurance through acts of legal owner
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When will an assurance be valid?
To be valid, the assurance must be unambiguous and must appear to have been a promise which one might reasonably expect to be relied upon by the person to whom it was made' Lord Walker approving Hoffman J in Walton
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What form may assurance take?
May take an actual agreement between the parties, a promise that falls short of an agreement or no more than an understanding or even a course of dealing that show that a particular state of affairs was assumed/accepted
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What did Pascoe v Turner establish?
COA held that the evidence established an assurance sufficient to be found estopped equity, since she acted to her detriment in reliance upon it she was entitle to a remedy by way of PE
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What did Inward v Baker establish?
Building a bungalow on dads land = COA held this amounted to a sufficient inducement or encouragement to give rise to estoppel
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What did Griffiths v Williams establish?
COA held that estoppel was established where a mother had assured her daughter that she would be entitled to live in her house for the whole of her life
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What is the limitation to active or passive assurance?
As equivalent of the rule that a trust can only be validly created if there was 'certainty of subject matter'
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What did Layton v Martin establish?
It was held that this assurance was too amorphous and insufficiently connected with specific property to give rise to PE
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What did Thorton v Major say with regards to limitations of assurance?
Lord Neuberger 'focusing on technicalities can lead to a degree of strictness - inconsistent with the fundamental aims of equity'
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What did Yeoman establish?
Lord Scott suggested that a contractual level of certainty as to assets identified was required in estoppel claims
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Can PE arise in assurance for future ?
PE can arise when an assurance is made concerning the future grant of rights in specific property
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What did Gillet v Holt say?
Robert Walker LJ, explained that these assurances were sufficient to give rise to PE, even though they didn't inc an explicit assurance that owner would not alter his will. The assurance must be more than a statement of present revocable intention
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What is reliance in PE?
An essential element of PE is that the C must have acted in reliance upon the assurance in relation to which the claim being made.
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What did Wayling establish?
Balcombe LJ 'there must be a sufficient link between the promises relied upon and the conduct which constitutes the detriment
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What is detriment in regard to PE?
PE will only be established if a C can show that he acted to his detriment upon the assurance that was made. Courts tended to express requirement of detriment in terms of 'change of position' and categorised are not closed
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What must detriment be considered with?
Detriment must therefore be considered together with the question of unconstitutionality, such that a change of position will only be sufficient substantial if it means it would be unjust/inequitable to withdraw the assurance/expectation
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What did Inward v Baker establish?
sufficient detriment will be demonstrated if the C had expended money improving the land in respect of which an assurance was given
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What did Pascoe v Turner establish?
Redecoration, improvements and repairs to a house = sufficient detriment
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What did Matharu establish?
Installed new kitched = sufficient detriment
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What did Hameed establish?
Incurring liability to repay a mortgage has been held as sufficient detriment where a C was promised half a share in the property
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What did Wayling v Jones establish?
Little more than pocket money as remuneration for his work was sufficient to constitute the necessary element of detriment
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What did Gresley establish?
A claim may arise even if C didn't act to his detriment financially, if there has been personal disadvantage 'deprived of the opportunity of a better life elsewhere' give rise to SD
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What did Plimmer v Wellington establish?
The Privy council 'the court must look at the circumstances in each case in what way the equity can be satisfied'
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In relating to satisfying the equity what is crucial?
the crucial distinguishing feature is said to be the nature of the claimants expectation raised by the assurance of the legal owner
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How are property disputes dealt with when married couples divorce?
Under Matrimonial Causes Act 1973 courts have discretion to achieve a solution which is fair for both parties, and may redistribute all the parties property even though one party has made no contribution to its acquisition
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What are the disadvantages of the system governing co-habitees?
Unless parties settle out of court a non owner must go to court to establish an interest in the property..time + cost + gather evidence difficult + outcome uncertain and may result in paying other parties fees
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What is a constructive trust and when does it arise?


many types, one example is common intention constructive trust. Arises in relation to land.

Card 3


What is proprietary estoppel?


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Card 4


What is s53(2) LPA 1925 do?


Preview of the front of card 4

Card 5


What is a presumed resulting trust?


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