Adrian John Gill v Malcom Kirk Gill
[2023] EWHC 641 (Ch)
Jonathan Dorman v John William Reece & Ors
19 September 2023
[2023] EWHC 2212 (Ch)
High Court
John borrowed money from his dad to buy a flat. He said he paid it back, but the judge didn't believe him. John has to pay the money back, plus interest, and also pay for things related to the flat his dad left him.
Key Facts
- •William Reece died on 2 September 2013 leaving a will.
- •The will bequeathed his flat to his son, John, and divided the residuary estate equally among his three children.
- •The deceased had given John £254,656.86 in 2007 as a bridging loan for a property purchase, which John claimed to have repaid.
- •The administrator of the estate claimed John owed the money plus interest and expenses related to the flat.
- •John acted in person, while the administrator was represented by counsel.
Legal Principles
A specific devisee is liable for expenses related to the property devised.
Re Rooke [1933] Ch 970; Snell’s Equity (34th edn) at para 35-034
The court has discretionary power to award interest under Section 35A of the Senior Courts Act 1981.
Senior Courts Act 1981, Section 35A
A breach of duty by an administrator could lead to a claim in devastavit.
Outcomes
John owes the estate £254,656.86.
The court rejected John's evidence that the loan was repaid, finding it inconsistent with his earlier statements and lacking credible explanation.
John must pay 3% simple interest on the debt from the date of sale of Broadlawns Court.
To compensate the estate for the loss of investment opportunity.
John is liable for the flat expenses.
As the specific devisee of the flat, he is responsible for its expenses.
John is liable for the costs of sale of the flat.
Unless the other estate assets are insufficient to meet liabilities. This was not the case.