Tajleena Islam v Sultana Jahan Islam & Ors
[2024] EWHC 1082 (Ch)
Balber Kaur Takhar v Gracefield Developments Limited & Ors
3 July 2024
[2024] EWHC 1714 (Ch)
High Court
A cousin tricked another cousin into giving up valuable properties by lying about compulsory purchase orders. The court found this was unfair and also that they forged documents to win a previous court case. The dishonest cousins have to give back the properties' worth (with interest) to the tricked cousin.
Key Facts
- •The case concerns the transfer of five properties from the Claimant (Mrs Takhar) to Gracefield Developments Ltd, a company owned by the Defendants (the Krishans).
- •The Claimant alleged that her signature on a key document, the Profit Share Agreement (PSA), was forged by the Defendants.
- •A previous judgment (the Purle Judgment) in favour of the Defendants was set aside for fraud (the Gasztowicz Judgment).
- •The current trial is a retrial of the original action, with added causes of action: deceit and conspiracy.
- •The Claimant's signature on the PSA was found to be forged by the Defendants.
Legal Principles
Where a judgment is set aside for fraud, findings of fact unaffected by the fraud may survive.
Supreme Court Takhar Judgment
The test for setting aside a judgment for fraud requires 'conscious and deliberate dishonesty' and materiality.
Royal Bank of Scotland plc v Highland Financial
Fraudulent misrepresentation can amount to undue influence.
UCB v Williams
Undue influence may require a pre-existing relationship of trust and confidence, but this is not always the case.
RBS v Etridge
Fraud in procuring a judgment can amount to 'unlawful means' for the tort of conspiracy.
Khrapunov
Witness immunity generally protects witnesses from civil liability for statements made in legal proceedings. However, there are exceptions, including for the fabrication of evidence.
Darker
In unlawful means conspiracy, the intention to injure need not be the predominant purpose, provided that harm to the claimant was the means by which the defendant sought to achieve their end.
Lonrho v Fayed
Damages in conspiracy are 'at large', but only actual pecuniary loss is recoverable.
Lonrho v Fayed (No.5)
In equitable compensation for breach of trust, the loss is normally assessed at the date of trial, with the benefit of hindsight.
AIB v Redler Solicitors
Outcomes
The Claimant's undue influence claim is upheld.
The Defendants made fraudulent misrepresentations that induced the Claimant to transfer the properties.
The Claimant's resulting trust claim is upheld.
The Claimant did not intend to transfer beneficial ownership of the properties to Gracefield.
The Claimant's conspiracy claim is upheld.
The Defendants' forgery of the PSA and its use in the original proceedings constituted unlawful means conspiracy.