Property Law - Resulting Trusts Flashcards
What is the overall heading of resulting and constructive trusts?
Trusts arising by operation of law
what statute was modernised in the LPA?
Statute of Frauds 1677
Statute of Frauds 1677 preceded what Act?
LPA 1925
LPA 1925 s.53(1)(b)
Trust of land EVIDENCED in signed writing
What happens if a trust of land is not evidenced in signed writing?
Trust is valid but unenforceable
LPA 1925 s.53(1)(c)
Disposition of any subsisting equitable interest need be evidenced in writing
LPA 1925 s.53(2)
No formalities needed for CT/RT
No formalities needed for CT/RT
LPA 1925 s.53(2)
Disposition of any subsisting equitable interest need be evidenced in writing
LPA 1925 s.53(1)(c)
Trust of land evidenced by signed writing
LPA 1925 s.53(1)(b)
What is the outcome of finding an RT/CT?
Valuable property protection - right against 3rd, protection from D’s insolvency and asserting equitable interest in new property
Westdeutsche v Islington LBC on conscience
Lord B-W - conscience need be affected with knowledge of circumstances giving rise to a trust in C’s favour before a trust arises
What judge in that case said that conscience of D needs to be affected with knowledge of the circumstances giving rise to a trust before RT/CT?
Lord B-W Westdeutsche v Islington LBC
Independent Trustee Services v GP Noble Trustees on conscience
Lloyd LJ stated CT as soon as D acquired property, but no personal liability until knowledge
What judge in what case separated the proprietary and personal aspects of a CT/RT?
Lloyd LJ in Independent Trustee Services v GP Noble Trustees
Independent Trustee Services v GP Noble Trustees, per Lloyd LJ
Separated personal and proprietary aspects of CT/RT
Why do H&M believe the conflict between Lloyd J in ITS and Lord B-W in Westdeutsche is overstated?
Even under Lord B-W, B has a ‘mere equity’, sharing all the same proprietary attributes of an equitable trust
Who argues the conflict between Lloyd J in ITS and Lord B-W in Westdeutsche is overstated?
H&M
What is the content of B’s trusteeship under an RT?
Bare trust - no duty to invest, just hold the property to account
From what Latin term does ‘RT’ come?
resalire
Resalire
Jumping back
What did Birks distinguish between?
Trusts resulting in pattern and resulting in origin
What is a trust resulting in pattern?
Whenever money returns to the original transferor
What is a trust resulting in origin?
Looking at the underlying reasoning and rationale of the trust, rather than just the mere fact of money returning to the original transferor
Under Birks’ distinction between trusts resulting in pattern and origin, which is an RT?
Resulting in origin
Two types of RTs
Automatic gifts and failing trusts
What is another name for an automatic gift RT
Presumed RT
Two subcategories of Automatic gifts
Voluntary transfer and purchase in another’s name
Give one case on purchase in another’s name
Dyer v Dyer; Huntingford v Hobbs; Prest v Petrodel Resources
Dyer v Dyer general
No evidence whatsoever
Dyer v Dyer judgment
Presumption of RT arises without evidence to the contrary
Basic starting point for presumptions in apparent gifts
Dyer v Dyer
No evidence whatsoever
Dyer v Dyer
Huntingford v Hobbs general
Downpayment and mortgage
Downpayment and mortgage
Huntingford v Hobbs
Huntingford v Hobbs judgment
Proportion of RT is the proportions at time of purchase
Prest v Petrodel Resources general
Ancillary relief, flats
Ancillary relief, flats
Prest v Petrodel Resources
Prest v Petrodel Resources judgment on purchase in another’s name
Irrelevant if all of part of the money is provided by D
Why does Mee argue voluntary transfer apparent gift category should be removed?
Absence of evidence to show it wasn’t a gift, so it should be a gift
Re Vinogradoff general
Grandmother, granddaughter
Prest v Petrodel Resources judgment on voluntary transfer
Nothing to rebut equitable presumption that company not intended to acquire beneficial interest
Re Vinogradoff judgment
Personalty - nothing to rebut presumption
Grandmother, granddaughter
Re Vinogradoff
Hodgson v Marks general
Lodger, elderly widow, oral agreement
Lodger, elderly widow, oral agreement
Hodgson v Marks
Hodgson v Marks judgment
RT as soon as land transferred to lodger, and purchase stepped into lodger’s shoes upon purchase
What case suggested that oral agreements not protected as express trusts under LPA amount to negative intention for RT?
Hodgson v Marks
Lord B-W in Westdeutsche on presumptions
They can be ‘easily rebutted’
Two exceptions to presumption of apparent gift
Family home context and voluntary conveyance of land
LPA 1925 s.60(3)
RT not implied for voluntary conveyances of land because of lack of express intention
RT not implied for voluntary conveyances of land because of lack of express intention
LPA 1925 s.60(3)
Lohia v Lohia
LPA abolished presumption of RT for voluntary land conveyances
What case made it clear that LPA abolished presumption of RT for voluntary land conveyances?
Lohia v Lohia
Why can the judgment in Lohia be doubted?
First instance decision
Prest v Petrodel Resources doubting Lohia
SC did not consider s.60(3) at all
What case doubts the abolition of presumption of gift in the case of voluntary conveyances of land?
Prest v Petrodel Resources
What is a positive of LPA s.60(3)?
Formalities increase the likelihood that transferor intended to make the conveyance, so presumption not needed
Midland Bank v Cooke general
Less than 7% contribution
Less than 7% contribution
Midland Bank v Cooke
Midland Bank v Cooke judgment
Inference of common intention meant married coupled intended equal beneficial shares, not presumption of gift
Stack v Dowden, per Hale
RTs should be avoided in shared homes
Stack v Dowden per Neuberger
RTs shouldn’t be completely abandoned in domestic contexts, but same outcome
Two relevant judges in Stack v Dowden
Neuberger and Hale
What judge in Stack said RTs should be avoided in shared homes?
Hale
What judge said RTs shouldn’t be completely abandoned in domestic context?
Neuberger
Abbott v Abbott per Hale
‘Now clear that the CT is generally the more appropriate tool’
What judge in what case stated it is ‘now clear that the CT is generally the more appropriate tool’?
Hale in Abbott v Abbott
Jones v Kernott general
Joint occupation, mortgage
Jones v Kernott
Stack prevents RT when home in joint names for joint occupation by a couple
What case suggested Stack prevents RT when home in joint names for joint occupation by a couple?
Jones v Kernott
What case allowed that the presumption of an RT may still be relevant in other domestic cases?
Jones v Kernott
What case gave four conditions for JT in common law and equity?
Jones v Kernott
Four conditions for JT in common law and equity?
Joint names, occupation, couple and mortgage under both names
Laskar v Laskar general
Mother daughter invesmtnet
Laskar v Laskar judgment
Neuberger rejected CT only way in family home, because of investment purpose
Why did Neuberger reject CT in Laskar v Laskar?
Investment purpose
Gallarotti v Sebastienelli general
Friends, B sole name, larger contributions not made
Friends, B sole name, larger contributions not made
Gallarotti v Sebastienelli
Gallarotti v Sebastienelli judgment
CT gave 25% share, almost exact same as contributions
What two cases show that CT/RT distinction makes little difference to the outcome?
Gallarotti v Sebastienelli; stack v Dowden
What does a presumption of RT require?
Absence of evidence and proof of a transfer
Mackowik v Kansas City said what of presumptions?
They are ‘bats of the law, flitting in the twilight but disappearing in the sunshine of actual facts’
What case said presumptions are ‘bats of the law, flitting in the twilight but disappearing in the sunshine of actual facts’?
Mackowik v Kansas City
Calverly v Green general
1/3 purchase, 2/3 joint mortgage
1/3 purchase, 2/3 joint mortgage
Calverly v Green
Calverly v Green
RT at time of purchase was 2/3 to M and 1/3 to W, but lien to M for what W had promised to pay
What evens out the fact that RTs are determined at the time of purchase?
The fact that A an get a lien for whatever B did not pay
What is a presumption of advancement?
Court assumes likely default is a gift to B
Who sais presumptions of advancement are not true presumptions?
Mee
Who said presumptions of advancement are true presumptions?
Chambers
Shephard v Cartwright
Loco parentis
Loco parentis
Shephard v Cartwright
Tinker v Tinker
Husband/fiancee for presumption of advancement