Banner Homes Holdings Ltd v Luff Developments Ltd & Anor [2000] EWCA Civ 3016 (30 March 2000)

Banner Homes Holdings Ltd v Luff Developments Ltd & Anor [2000] EWCA Civ 3016 (30 March 2000)

The shares in Stowhelm Ltd acquired by Luff were acquired in furtherance of a joint venture arrangement with Banner, and it would be inequitable for Luff to treat them as its own. Therefore, the issued share capital of Stowhelm is held by Luff on trust for itself and Banner in equal shares. The Pallant v Morgan equity does not apply to the site itself, as it was always intended to be acquired as Stowhelm's own asset.

Citation
[2000] EWCA Civ 3016
Parties
Appellant: Banner Homes Holdings Ltd; Respondent: Luff Developments Ltd; Respondent: Stowhelm Ltd
Jurisdiction
England and Wales
Judgment Date
30 March 2000
Procedural Posture
Civil Appeal / Final Appellate Judgment
Outcome
Appeal allowed in part, application to amend notice of appeal dismissed, declaration of trust over shares granted, consequential orders made, costs awarded to Banner and Stowhelm, permission to appeal refused.
Legal Topics
Constructive Trusts, Joint Venture, Shareholding, Pallant V Morgan Equity
Equity Trusts Company Law Constructive Trusts Joint Venture Shareholding Pallant V Morgan Equity

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Parties

Banner Homes Holdings Ltd

Appellant

Luff Developments Ltd

Respondent

Stowhelm Ltd

Respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether shares in Stowhelm Ltd are held on constructive trust for Banner and Luff in equal shares
  2. 2 Whether the site acquired by Stowhelm is held on trust for Banner
  3. 3 Whether the Pallant v Morgan equity applies to the acquisition of shares and/or the site

Ratio Decidendi

The shares in Stowhelm Ltd acquired by Luff were acquired in furtherance of a joint venture arrangement with Banner, and it would be inequitable for Luff to treat them as its own. Therefore, the issued share capital of Stowhelm is held by Luff on trust for itself and Banner in equal shares. The Pallant v Morgan equity does not apply to the site itself, as it was always intended to be acquired as Stowhelm's own asset.

Court Disposition

Appeal allowed in part, application to amend notice of appeal dismissed, declaration of trust over shares granted, consequential orders made, costs awarded to Banner and Stowhelm, permission to appeal refused.

Orders

  • Application to amend notice of appeal to claim site held on trust dismissed.
  • Appeal against order dismissing action allowed.