Leeder v Stevens [2005] EWCA Civ 50 (12 January 2005)

Leeder v Stevens [2005] EWCA Civ 50 (12 January 2005)

The transaction was manifestly to the defendant's disadvantage, she reposed trust and confidence in the claimant, and the presumption of undue influence arose. The claimant failed to rebut the presumption. The District Judge erred by focusing on actual coercion and not applying the correct legal test. The transaction should be set aside, with the claimant to be repaid the sums advanced as a loan.

Citation
[2005] EWCA Civ 50
Parties
Appellant/defendant: Maureen Mary Leeder; Respondent/claimant: Denis Michael Stevens
Jurisdiction
England and Wales
Judgment Date
12 January 2005
Procedural Posture
Civil Appeal / Appeal From District Judge's Decision
Outcome
Appeal allowed; transaction set aside on terms
Legal Topics
Undue Influence, Setting Aside Transactions, Trusts of Land, Presumption of Influence
Equity Property Law Undue Influence Setting Aside Transactions Trusts of Land Presumption of Influence

Case Brief

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Parties

Maureen Mary Leeder

Appellant/defendant

Denis Michael Stevens

Respondent/claimant

Procedural Posture

Civil Appeal / Appeal From District Judge's Decision

Legal Issues

  1. 1 Whether the transfer of half the defendant's house to the claimant for £5,000 should be set aside for undue influence
  2. 2 Whether the District Judge applied the correct legal principles regarding undue influence

Ratio Decidendi

The transaction was manifestly to the defendant's disadvantage, she reposed trust and confidence in the claimant, and the presumption of undue influence arose. The claimant failed to rebut the presumption. The District Judge erred by focusing on actual coercion and not applying the correct legal test. The transaction should be set aside, with the claimant to be repaid the sums advanced as a loan.

Court Disposition

Appeal allowed; transaction set aside on terms

Orders

  • Transfer of house set aside on condition that £30,000 is paid to the claimant
  • Appeal allowed with costs on an indemnity basis from 21 days after 2nd September 2004