Common Intention Constructive Trusts Flashcards
What discretion does the court have under the Matrimonial Causes Act 1973 or the Civil Partnership Act 2004 on divorce or dissolution?
To allocate ownership fairly between the parties
How can legal title to land be held?
As either:
* Sole legal owner
* Joint tenants
What are the ways a legal owner may hold the legal title?
In the following ways:
* As full legal and beneficial owner
* On trust for a sole beneficiary
* On trust for more than one beneficiary as joint tenants
* On trust for more than one beneficiary as tenants in common in equal shares
* On trust for more than one beneficiary as tenants in common in unequal shares
What determines beneficial entitlement when there is written evidence of an express trust?
It is determined by s53(1)(b) LPA 1925
The Land Registry TR1 form includes a provision for specifying equitable ownership.
What determines beneficial ownership when an express trust is not created?
Common intention constructive trusts (Stack v Dowden)
The starting point is that equitable title reflects legal title.
What must an individual establish to claim a beneficial interest under a common intention constructive trust in sole legal ownership cases?
They need to show:
* A common interest that they have a beneficial interest
* Detrimental reliance on that intention
In joint legal ownership cases, what must an individual do to establish they are not beneficial joint tenants?
Rebut the presumption that they are beneficial joint tenants
What can be looked at to determine the common intention of the parties?
The common intention can be determined by:
* Express statements as to ownership
* Inferred intention based on the circumstances
Can intention regarding beneficial interest be ambulatory?
Yes, beneficial interest can be established or the presumption of joint tenancy rebutted after acquisition
What is the starting point for determining beneficial ownership in a common intention constructive trust?
Equitable title reflects legal title
What are the elements of rebutting the presumption of joint ownership?
- Rebutting the presumption that equity follows the law - is there express or implied intention to hold other than jointly?
- Did they rely on this to their detriment
- Quantification
What evidence is considered to determine the parties’ shared intention?
- Advice or discussions the parties had
- Reason legal title was registered in their particular names
- Purpose for the house
- Nature of relationship
- Whether the parties have children
- How the house was financed
- How the parties arranged other finances and divided responsibility
What does the court look for in determining the intention of the parties?
The actual intention of the parties (Jones v Kernott).
What is the best evidence for determining beneficial ownership?
Evidence relating to express agreements or discussions as to beneficial ownership.
Are unequal financial contributions sufficient to rebut the presumption of joint ownership?
No, unequal financial contributions alone are not enough (Fowler v Barron).
Can the common intention of the parties change over time?
Yes, it is possible for the common intention of the parties to change over time (Jones v Kernott).
What does quantification involve?
Looking for the actual intention of the parties by examining the whole course of conduct.
What will the court do as a last resort in quantification?
Impute an intention for fair shares based on the whole course of conduct.
i.e look at what their intentions as reasonable and jut people would have been had they thought about it at the time
What are the steps in a sole legal ownership case?
- Equity follows the law
- Must establish an interest and rebut (1)
- Did they rely on this to their detriment
- Quantification
What should statements regarding ownership focus on when trying to show joint ownership?
Statements should focus on shared ownership, not merely occupation (e.g., half yours, 50:50).
Can excuses show an intention to hold as joint owners?
Excuses may include being too young to hold legal title, but not all excuses are valid if designed to appease rather than confer beneficial interest.
What approach is used to assess ownership in Sole Legal Ownership Cases?
A holistic approach using Lady Hale’s Stack v Dowden factors, moving beyond a focus on financial contributions.
What type of contributions are considered in establishing beneficial interest?
Indirect financial contributions that allow the legal owner to make mortgage repayments are considered.
What non-financial factors have been rejected in some cases?
Non-financial factors such as performing household duties or staying home to look after children have been rejected in cases like Thomson v Humphrey, Walsh v Singh, and Morris v Morris.
What is detrimental reliance in the context of CICTs?
Detrimental reliance refers to conduct by the non-legal owner that is otherwise inexplicable, such as heavy DIY, renovations, or payment of expenses.
What doesn’t count as detrimental reliance?
- Decorating
- Looking after children
What is controversial about imputation in CICTs?
Imputation is controversial as it is seen as a form of redistributive justice.
