Clarke v Harlowe

Clarke v Harlowe

Equitable accounting does not apply to improvements made to jointly owned property prior to separation where such expenditures were in accordance with the parties' arrangements and there was no breach of obligation. The express declaration of trust governs the beneficial interests, and absent evidence of an agreement to vary those interests or breach of arrangements, no equitable accounting is warranted.

Parties
Claimant: Margot Alison Clarke; Defendant: Christopher Michael Harlowe
Jurisdiction
England and Wales
Judgment Date
12 August 2005
Procedural Posture
Civil / Preliminary Ruling
Outcome
No equitable accounting for improvements prior to separation; claimant entitled to one half of net proceeds of sale as per express declaration of trust.
Legal Topics
Express Declaration of Trust, Equitable Accounting, Beneficial Ownership, Improvements to Jointly Owned Property
Trusts Property Law Equity Express Declaration of Trust Equitable Accounting Beneficial Ownership Improvements to Jointly Owned Property

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Parties

Margot Alison Clarke

Claimant

Christopher Michael Harlowe

Defendant

Procedural Posture

Civil / Preliminary Ruling

Legal Issues

  1. 1 Whether equitable accounting applies to improvements made to jointly owned property prior to separation
  2. 2 Effect of express declaration of trust on beneficial ownership

Ratio Decidendi

Equitable accounting does not apply to improvements made to jointly owned property prior to separation where such expenditures were in accordance with the parties' arrangements and there was no breach of obligation. The express declaration of trust governs the beneficial interests, and absent evidence of an agreement to vary those interests or breach of arrangements, no equitable accounting is warranted.

Court Disposition

No equitable accounting for improvements prior to separation; claimant entitled to one half of net proceeds of sale as per express declaration of trust.

Orders

  • No credit to Christopher Harlowe for improvements made prior to separation.
  • Distribution of net proceeds of sale to be in accordance with express declaration of trust.