Smith v Cooper & Anor [2010] EWCA Civ 722 (25 June 2010)

Smith v Cooper & Anor [2010] EWCA Civ 722 (25 June 2010)

The presumption of undue influence applied to the transfer of Fifty Farm and the declaration of joint tenancy in Rose Cottage. The presumption was not rebutted, as there was no independent advice and no evidence that Miss Cooper entered into the transactions of her own free will, independent of Mr Smith's influence. The transactions were therefore voidable and should be set aside. Constructive trust principles could not be used to reach the same result where the underlying agreement was vitiated by undue influence.

Citation
[2010] EWCA Civ 722
Parties
Claimant/respondent: Peter John Smith; Defendant/appellant: Susan Cooper (by her litigation friend the Official Solicitor)
Jurisdiction
England and Wales
Judgment Date
25 June 2010
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From County Court
Outcome
Appeal allowed
Legal Topics
Undue Influence, Constructive Trusts, Beneficial Ownership, Setting Aside Transactions
Equity Property Law Family Law Undue Influence Constructive Trusts Beneficial Ownership Setting Aside Transactions

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Parties

Peter John Smith

Claimant/respondent

Susan Cooper (by her litigation friend the Official Solicitor)

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From County Court

Legal Issues

  1. 1 Whether the presumption of undue influence applied to the transfer of property and declaration of joint tenancy
  2. 2 Whether the presumption of undue influence was rebutted by the respondent
  3. 3 Whether the transactions should be set aside and on what terms

Ratio Decidendi

The presumption of undue influence applied to the transfer of Fifty Farm and the declaration of joint tenancy in Rose Cottage. The presumption was not rebutted, as there was no independent advice and no evidence that Miss Cooper entered into the transactions of her own free will, independent of Mr Smith's influence. The transactions were therefore voidable and should be set aside. Constructive trust principles could not be used to reach the same result where the underlying agreement was vitiated by undue influence.

Court Disposition

Appeal allowed

Orders

  • The transfer of equity of Fifty Farm to Mr Smith is set aside for undue influence; property to be held on trust for Miss Cooper absolutely.
  • The declaration of joint tenancy in Rose Cottage is set aside; beneficial interests to be determined according to contributions, with Mr Smith's share reflecting his cash and work contributions only.