Nilsson & Anor v Cynberg [2024] EWHC 2164 (Ch) (23 August 2024)

Nilsson & Anor v Cynberg [2024] EWHC 2164 (Ch) (23 August 2024)

An express declaration of trust can be overridden by a subsequent common intention constructive trust arising after the declaration, and proprietary estoppel can be founded on detriment including taking over mortgage payments and foregoing ancillary relief proceedings; proprietary estoppel in this case arose in 2009, outside the statutory period for transaction at undervalue, so the trustees' counterclaim fails.

Citation
[2024] EWHC 2164 (Ch)
Parties
Appellant/second Defendant/joint Trustee in Bankruptcy: Ann Nilsson; Appellant/third Defendant/joint Trustee in Bankruptcy: Edward Thomas; First Respondent/claimant: Collette Cynberg
Jurisdiction
England and Wales
Judgment Date
23 August 2024
Procedural Posture
Appeal / Final Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Express Declaration of Trust, Common Intention Constructive Trust, Proprietary Estoppel, Transaction at Undervalue, Bankruptcy, Beneficial Ownership
Insolvency Property Law Equity Express Declaration of Trust Common Intention Constructive Trust Proprietary Estoppel Transaction at Undervalue Bankruptcy +1 more

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Parties

Ann Nilsson

Appellant/second Defendant/joint Trustee in Bankruptcy

Edward Thomas

Appellant/third Defendant/joint Trustee in Bankruptcy

Collette Cynberg

First Respondent/claimant

Procedural Posture

Appeal / Final Judgment on Appeal

Legal Issues

  1. 1 Whether an express declaration of trust can be overridden by a subsequent common intention constructive trust
  2. 2 Whether detriment suffered by the claimant was sufficient to found proprietary estoppel
  3. 3 Whether assurances given were sufficient to found proprietary estoppel or constructive trust

Ratio Decidendi

An express declaration of trust can be overridden by a subsequent common intention constructive trust arising after the declaration, and proprietary estoppel can be founded on detriment including taking over mortgage payments and foregoing ancillary relief proceedings; proprietary estoppel in this case arose in 2009, outside the statutory period for transaction at undervalue, so the trustees' counterclaim fails.

Court Disposition

Appeal dismissed

Orders

  • Application for permission to appeal on Ground 1 dismissed
  • Appeal on Grounds 2, 3, and 4 dismissed