Healey v Brown [2002] EWHC Ch 1405 (25 April 2002)

Healey v Brown [2002] EWHC Ch 1405 (25 April 2002)

The mutual wills agreement between Mr and Mrs Brown was not enforceable as a contract due to non-compliance with section 2 of the Law of Property (Miscellaneous Provisions) Act 1989, but a constructive trust arises over the half-share of the flat acquired by Mr Brown from Mrs Brown, as it would be unconscionable to frustrate Mrs Brown's intention and the Claimant's expectation. The First Defendant holds the flat on trust for himself and the Claimant in equal shares.

Citation
[2002] EWHC Ch 1405
Parties
Claimant: Jacqueline Healey; First Defendant: Paul Brown; Second Defendant: Stanley Saffer
Jurisdiction
England and Wales
Judgment Date
25 April 2002
Procedural Posture
Chancery Division Civil Claim / Judgment After Trial
Outcome
Partially in favour of the Claimant
Legal Topics
Mutual Wills, Constructive Trusts, Secret Trusts, Law of Property (miscellaneous Provisions) Act 1989, Disposition of Land, Joint Tenancy, Doctrine of Survivorship
Equity Trusts and Estates Property Law Mutual Wills Constructive Trusts Secret Trusts Law of Property (miscellaneous Provisions) Act 1989 Disposition of Land +2 more

Case Brief

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Parties

Jacqueline Healey

Claimant

Paul Brown

First Defendant

Stanley Saffer

Second Defendant

Procedural Posture

Chancery Division Civil Claim / Judgment After Trial

Legal Issues

  1. 1 Whether mutual wills executed by Mr and Mrs Brown created enforceable obligations restricting the survivor's disposition of property
  2. 2 Whether the transfer of the flat by Mr Brown to himself and the First Defendant breached the mutual wills agreement
  3. 3 Whether section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 precludes enforcement of the mutual wills agreement as a contract

Ratio Decidendi

The mutual wills agreement between Mr and Mrs Brown was not enforceable as a contract due to non-compliance with section 2 of the Law of Property (Miscellaneous Provisions) Act 1989, but a constructive trust arises over the half-share of the flat acquired by Mr Brown from Mrs Brown, as it would be unconscionable to frustrate Mrs Brown's intention and the Claimant's expectation. The First Defendant holds the flat on trust for himself and the Claimant in equal shares.

Court Disposition

Partially in favour of the Claimant

Orders

  • Declaration that the property at 3 Phoenix Court is held on trust by the First Defendant for himself and the Claimant in equal shares