Irving John Cleave & Anor v Mary Louise Cleave
[2024] EWHC 2492 (Ch)
Michael Parker v Thomas Parker-Bowyer & Ors
5 September 2024
[2024] EWHC 2239 (Ch)
High Court
A dad gave his son a house to save on inheritance tax, but secretly kept the right to live there and control it. The court said the son had to honor this agreement because it would be unfair not to.
Key Facts
- •Acrimonious father-son dispute over the transfer of a house.
- •Claimant (father) alleges constructive trust over the house transferred to the First Defendant (son).
- •Transfer was made to avoid inheritance tax, allegedly subject to conditions that the father retain control and use of the property.
- •Claimant admits to misleading mortgage brokers about the transfer.
- •Counterclaim for unpaid electricity bill and trespass.
- •Multiple witnesses testified, largely family members with potential biases.
Legal Principles
A declaration of trust concerning land must be in writing (unless it's a resulting, implied, or constructive trust).
Law of Property Act 1925, s.53(1)(b) and (2)
Common intention constructive trust: Inequitable for legal owner to claim sole beneficial ownership if there was a common intention, reliance, and detriment.
Grant v Edwards [1986] Ch 638
Rochefoucauld constructive trust: Inequitable to use statutory formalities to deny an agreed interest, even without proof of detriment.
Rochefoucauld v Boustead [1898] 1 Ch 550
Where there's an express declaration of beneficial interests, no constructive trust can arise unless the conveyance is set aside or rectified.
Goodman v Gallant [1986] Family 106
Caution should be exercised when assessing oral evidence, especially in family disputes, and documentary evidence should be prioritized.
Gestmin SGPS SA v Credit Suisse (UK) Ltd [2013] EWHC 3560 (Comm)
In land title matters, certainty is crucial; constructive trusts shouldn't be imposed on slender materials.
Ashburn Anstalt v Arnold [1989] Ch 1
Outcomes
Constructive trust in favour of the Claimant (father).
The court found a common intention constructive trust and/or a Rochefoucauld constructive trust based on the agreement that the father would retain a life interest in the property. The court rejected the son's evidence and accepted that the transfer was subject to conditions.
Counterclaim for unpaid electricity bill dismissed.
No binding agreement was found; the court also noted insufficient contractual basis in pleadings or evidence.
Counterclaim for trespass dismissed.
The father was entitled to carry out the works due to the constructive trust and associated conditions.
Chattels claim adjourned for further consideration.
The court noted the extensive list of chattels and the need for a proportionate approach to the claim, potentially involving alternative dispute resolution.