Smith v Cooper & Anor

Smith v Cooper & Anor

The presumption of undue influence applied to the transfer of Fifty Farm and the declaration of joint tenancy in Rose Cottage, and was not rebutted by Mr Smith, as Miss Cooper did not receive independent advice and there was no evidence she acted free from Mr Smith's influence. The transactions were therefore voidable and should be set aside. Restitution should be effected by apportioning the proceeds and beneficial interests according to the parties' respective financial contributions, with a valuation to determine precise shares.

Parties
Claimant/respondent: Peter John Smith; Defendant/appellant: Susan Cooper
Jurisdiction
England and Wales
Judgment Date
25 June 2010
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Undue Influence, Constructive Trusts, Resulting Trusts, Restitution, Beneficial Ownership
Equity Property Law Undue Influence Constructive Trusts Resulting Trusts Restitution Beneficial Ownership

Case Brief

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Parties

Peter John Smith

Claimant/respondent

Susan Cooper

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the presumption of undue influence applied to the transfer of property and declaration of joint tenancy between the parties
  2. 2 Whether the presumption of undue influence was rebutted by the respondent
  3. 3 What the consequences are for setting aside the relevant transactions if undue influence is found

Ratio Decidendi

The presumption of undue influence applied to the transfer of Fifty Farm and the declaration of joint tenancy in Rose Cottage, and was not rebutted by Mr Smith, as Miss Cooper did not receive independent advice and there was no evidence she acted free from Mr Smith's influence. The transactions were therefore voidable and should be set aside. Restitution should be effected by apportioning the proceeds and beneficial interests according to the parties' respective financial contributions, with a valuation to determine precise shares.

Court Disposition

Appeal allowed

Orders

  • Transfer of equity of Fifty Farm to Mr Smith set aside for undue influence; property to be held on trust for Miss Cooper, subject to Mr Smith's contribution for adjacent land and costs.
  • Declaration of beneficial joint tenancy in Rose Cottage set aside; beneficial interests to be apportioned according to parties' contributions, including renovation costs.