Equity won't assist a volunteer Flashcards
What did Turner say about Equity?
Equity won’t perfect an imperfect gift. Equity also will not assist a volunteer. If you have messed up on the formalities, equity will not help you. You have to be clear with the route you have chosen and cannot apply another if you fail one.
What happened in Jones v Lock?
J and his W had a 9 month old child, on a return from a business trip, he had been given £900 check payable to himself. He gave it to the baby then put it in a safe. J died that night.
HELD: the money still belonged to him, you cannot validly transfer a cheque payable to yourself by putting it in someone’s hand. He had not complied with the formalities of an outright gift.
Lord Canworth- dangerous if loose conversations of this sort, should have effect of declarations of trust.
What happened in Richards v Delbridge (lease transfer)?
A grandfather tried to transfer a lease by scribbling on the back of it. VOID did not comply with the formalities
What happened in Choitram International v Pagarani?
C was a businessman that had set up a charitable foundation. Terminally ill stated he wanted all his wealth to go to his charitable foundation but did not comply with any of Milroys method including the outright gift which required him to sign his shares over. Children argued it was still his as he did not declare himself as a trustee either.
HELD: valid gift. Lord Browne-wilkinson, although equity won’t aid a volunteer, it will not strive to defeat a gift.
What case is the exception to the rule that equity won’t assist a volunteer?
Re Rose Rule - the every effort test
In equity ownership of shares can be regarded as having been transferred when the transferor has made every effort to comply with the rule and put everything beyond recall.
What happened in Re Rose?
Rose had signed a stock transfer form transferring shares to his wife, he had done it correctly. The documents were sent to the company, the wife received the shares in her name. 5 years later, Mr Rose died. Tax law stated that you need to live more than 5 years after a gift is given otherwise you pay more tax. Mrs R said the gift was made when he signed the transfer form.
HELD: the equitable title passed on the day he signed the form, Rose had made every effort to transfer the shares. So equitable ownership had passed, A transfer is complete in equity if a transferor had made every effort0.
What happened in Mascall v Mascall?
A gift is complete once the settlor or donor has done everything that a donor has to do. If a donee has done everything necessary to constitute his title completely without further assistance from the donor, assistance from equity is not needed.
Father and son fell out after transfer signed and stamped out before registration at H.M. Land registry. Every effort test passed.
What happened in Pennington v Waine?
An aunt wanted to give some shares in the family company to her nephew. But she had not passed the every effort test. She signed a stock transfer form and passed it to her accountant but he did not take any further action. Aunt told her nephew that the shares were his. He became a director of the company based on her statement which wouldn’t be allowed unless he was a shareholder. The aunt later died, It was a question of whether the shares were his or hers.
CA HELD: every effort test had not been passed, aunt could have taken more steps. Equity ownership had passed as it would have been unconcionable after a certain point for the aunt to change her mind. Example of detrimental reliance.
How did the case of Curtis interpret Pennington v Waine?
Courts interpreted Pennington as requiring the recipient to have done something to his detriment e.g. relying on the transfer going through
