Dutton & Anor v Davis & Anor [2006] EWCA Civ 694 (04 May 2006)

Dutton & Anor v Davis & Anor [2006] EWCA Civ 694 (04 May 2006)

The transaction, construed on its terms and in light of relevant surrounding circumstances, was an outright sale with options to repurchase and not a mortgage; the judge was correct to reject the recharacterisation as a mortgage.

Citation
[2006] EWCA Civ 694
Parties
Claimant/appellant: Andrew Dutton; Claimant/appellant: Mrs Dutton; Defendant/respondent: Mr Davis; Defendant/respondent: Mrs Davis
Jurisdiction
England and Wales
Judgment Date
04 May 2006
Procedural Posture
Civil Appeal / Appeal From County Court Judgment
Outcome
Appeal dismissed
Legal Topics
Mortgages, Equitable Right of Redemption, Sale and Leaseback, Sham Transactions, Interpretation of Legal Instruments
Property Law Equity Contract Law Mortgages Equitable Right of Redemption Sale and Leaseback Sham Transactions Interpretation of Legal Instruments

Case Brief

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Parties

Andrew Dutton

Claimant/appellant

Mrs Dutton

Claimant/appellant

Mr Davis

Defendant/respondent

Mrs Davis

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From County Court Judgment

Legal Issues

  1. 1 Whether the transaction was in substance a mortgage despite its form as a sale with options to repurchase
  2. 2 Whether the transaction was a sham
  3. 3 Whether the incidence of costs, stamp duty, and financial pressure rendered the transaction a mortgage

Ratio Decidendi

The transaction, construed on its terms and in light of relevant surrounding circumstances, was an outright sale with options to repurchase and not a mortgage; the judge was correct to reject the recharacterisation as a mortgage.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed.