Insol Funding Company Ltd v Cowlam & Ors

Insol Funding Company Ltd v Cowlam & Ors

Ms Cowlam is entitled to an 80% beneficial interest in the property under a constructive trust, based on a 2001 agreement with Mr Cowey, her greater contributions, and subsequent conduct evidencing reliance and a changed common intention. The TR1 did not create an express trust as it was not executed. Ms Cowlam has no proprietary rights over Mr Cowey’s share by equity of exoneration or equitable subrogation, as she acted as a volunteer and not as a guarantor or lender, and the settlement agreement did not alter this position.

Parties
Claimant and Second Part 20 Defendant: Insol Funding Company Limited; First Defendant and Part 20 Claimant: Ms Sacha Fairfax Cowlam; Second Defendant and First Part 20 Defendant: Mr Christopher William Cowey
Jurisdiction
England and Wales
Judgment Date
29 August 2017
Procedural Posture
Civil (chancery, Property/trusts) / Judgment After Trial of Part 20 Claim
Outcome
Declaration of beneficial interests; rejection of further proprietary claims by Ms Cowlam over Mr Cowey’s share
Legal Topics
Constructive Trusts, Beneficial Ownership, Equitable Charges, Proprietary Estoppel, Equitable Subrogation, Equity of Exoneration
Equity Property Law Trusts Constructive Trusts Beneficial Ownership Equitable Charges Proprietary Estoppel Equitable Subrogation +1 more

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Parties

Insol Funding Company Limited

Claimant and Second Part 20 Defendant

Ms Sacha Fairfax Cowlam

First Defendant and Part 20 Claimant

Mr Christopher William Cowey

Second Defendant and First Part 20 Defendant

Procedural Posture

Civil (chancery, Property/trusts) / Judgment After Trial of Part 20 Claim

Legal Issues

  1. 1 Whether Ms Cowlam holds an 80% beneficial interest in the property under a constructive trust
  2. 2 Whether Ms Cowlam has proprietary rights over Mr Cowey’s share by equity of exoneration or equitable subrogation
  3. 3 Effect of the settlement agreement between Ms Cowlam and Insol on Insol’s rights and locus standi

Ratio Decidendi

Ms Cowlam is entitled to an 80% beneficial interest in the property under a constructive trust, based on a 2001 agreement with Mr Cowey, her greater contributions, and subsequent conduct evidencing reliance and a changed common intention. The TR1 did not create an express trust as it was not executed. Ms Cowlam has no proprietary rights over Mr Cowey’s share by equity of exoneration or equitable subrogation, as she acted as a volunteer and not as a guarantor or lender, and the settlement agreement did not alter this position.

Court Disposition

Declaration of beneficial interests; rejection of further proprietary claims by Ms Cowlam over Mr Cowey’s share

Orders

  • The beneficial interest in the property at 11 South Croxted Road is held on constructive trust as tenants in common: 80% to Ms Cowlam, 20% to Mr Cowey.
  • Ms Cowlam has no further rights over Mr Cowey’s share by way of equity of exoneration or equitable subrogation.