White & Ors v Vandervell Trustees Ltd. (No. 2) [1974] EWCA Civ 7 (03 July 1974)

White & Ors v Vandervell Trustees Ltd. (No. 2) [1974] EWCA Civ 7 (03 July 1974)

Upon exercise of the option in 1961, the shares were acquired with the children's settlement funds and held by the trustee company on trust for the children, as evidenced by conduct and correspondence. No writing was required for the creation of this trust of personalty. The resulting trust for Mr. Vandervell ceased at that point, and neither he nor his executors could claim the dividends. Estoppel would also prevent such a claim.

Citation
[1974] EWCA Civ 7
Parties
Plaintiff Respondent: Gerard Wilfred White Rudolph Edgar Francis de Trafford; Plaintiff Respondent: Joseph Leonard Reed; Defendant Appellant: Vandervell Trustees Limited
Jurisdiction
England and Wales
Judgment Date
03 July 1974
Procedural Posture
Appeal / Court of Appeal Judgment on Appeal From High Court (mr. Justice Megarry)
Outcome
Appeal allowed. Action dismissed with costs here and below. Leave to appeal to the House of Lords granted.
Legal Topics
Resulting Trusts, Declaration of Trust, Disposition of Equitable Interests, Section 53(1)(c) Law of Property Act 1925, Estoppel, Pleadings in Civil Procedure
Equity and Trusts Tax Law Resulting Trusts Declaration of Trust Disposition of Equitable Interests Section 53(1)(c) Law of Property Act 1925 Estoppel Pleadings in Civil Procedure

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Gerard Wilfred White Rudolph Edgar Francis de Trafford

Plaintiff Respondent

Joseph Leonard Reed

Plaintiff Respondent

Vandervell Trustees Limited

Defendant Appellant

Procedural Posture

Appeal / Court of Appeal Judgment on Appeal From High Court (mr. Justice Megarry)

Legal Issues

  1. 1 Whether the 100,000 'A' shares acquired by Vandervell Trustees Limited in 1961 were held on trust for the children or on resulting trust for Mr. Vandervell, thus exposing his estate to surtax liability.
  2. 2 Whether a valid trust was created in 1961 without written disposition under section 53(1)(c) of the Law of Property Act 1925.
  3. 3 Whether estoppel prevents Mr. Vandervell or his executors from asserting a beneficial interest contrary to the arrangements made.

Ratio Decidendi

Upon exercise of the option in 1961, the shares were acquired with the children's settlement funds and held by the trustee company on trust for the children, as evidenced by conduct and correspondence. No writing was required for the creation of this trust of personalty. The resulting trust for Mr. Vandervell ceased at that point, and neither he nor his executors could claim the dividends. Estoppel would also prevent such a claim.

Court Disposition

Appeal allowed. Action dismissed with costs here and below. Leave to appeal to the House of Lords granted.

Orders

  • Action by executors dismissed.
  • Costs awarded to appellants (Vandervell Trustees Limited) in Court of Appeal and below.