Equity will not assist a volunteer, except when it will

Question 0

Five situations when equity will assist a volunteer

Answer 0

Re Rose, Strong v Bird, Re Ralli’s, PE and donatio mortis causa

Very uncertain

Question 1

Milroy v Lord (Turner LJ)

Richards v Delbridge (Jessel MR) affirming

Answer 1

Equity will not perfect an imperfect gift - the donor must do everything necessary ie self-declare, convey to a trustee or convey to a donee

Question 2

Pennington v Waine

Re Rose

Answer 2

Arden LJ extended Re Rose from where the settlor has done all in his power to when it would be unconscionable to resile from a gift

Question 3

Choithram v Pagarani

Answer 3

It seems that Arden LJ misread Choithram in Pennington v Waine – it is not the unconscionability which founds the test — this was an express trust not a constructive trust per Halliwell and Oakley
Ratio of this case is that words of gift were used

Question 4

Maitland

Answer 4

He has said that Richards v Denbridge is correct because words of gift cannot equate to a self-declaration of a trustee – they are very different scenarios dues the duties of a T in office

Question 5

Re Pehrsson

Curtis v Pulbrook (Briggs J), Kaye v Zeital

Answer 5

L Hoffman declared that Re Rose should be limited to cases where the donee is ‘clothed with the power to complete the gift’ –

– continued to limit Pennington

Question 6

Strong v Bird

Answer 6

Has been described by Meagher as ‘equity abused’ - and suggest that it should be limited to releasing one from debt – however, it was extended in Re James - this is problematic as it is somewhat random when administrators become involved as they are not appointed like Ts

Question 7

Re Ralli’s

Answer 7

Potentially per incuriam as there was no mention of Re Brooks which decided the opposite – moreover, there was a distinctly long length of time here and intention was not considered

Question 8

Gillett v Holt

Answer 8

Less uncertain and more rigourous for PE as several tests (assurance, reliance, detriment, unconscionability) –

Question 9

Donationes mortis causa

Answer 9

They also require proof of continuing intention so these are less concerning regarding this area

Question 10

Transfer of shares

Answer 10

s544 and s70-4 Companies Act 2006 referencing Stock Transfer Act 1961

• If no transfer form has been filled out then closer to Curtis v Pullbrook
• If the agent has the transfer form then there can be a ‘benevolent construction’ per Pennington