Frenkel v LA Micro Group (UK) Ltd and others

Frenkel v LA Micro Group (UK) Ltd and others

A vendor-purchaser constructive trust arises on an oral agreement for the sale of an equitable interest in shares, even where the purchaser is the sole legal owner and becomes the sole beneficial owner by merger; section 53(2) disapplies section 53(1)(c) in such cases, and section 53(1)(c) applies to equitable...

Source-derived case information.

Parties
Appellant: Frenkel; Appellant: LA Micro Group Inc; Respondent: LA Micro Group (UK) Ltd; Respondent: David Bell; Respondent: Arkadiy Lyampert
Jurisdiction
England and Wales
Judgment Date
11 December 2024
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Appeal dismissed
Legal Topics
Vendor Purchaser Constructive Trust, Disposition of Equitable Interests, Section 53 Law of Property Act 1925, Merger of Legal and Equitable Interests
Equity Trusts Property Law Vendor Purchaser Constructive Trust Disposition of Equitable Interests Section 53 Law of Property Act 1925 Merger of Legal and Equitable Interests

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 15 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Frenkel

Appellant

LA Micro Group Inc

Appellant

LA Micro Group (UK) Ltd

Respondent

David Bell

Respondent

Arkadiy Lyampert

Respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Does a vendor-purchaser constructive trust (VPCT) arise on an oral agreement for the sale of an equitable interest in shares where the purchaser is already the sole legal owner and beneficial owner of the remainder?
  2. 2 Does section 53(1)(c) Law of Property Act 1925 apply to dispositions of equitable interests in property other than land?

Ratio Decidendi

A vendor-purchaser constructive trust arises on an oral agreement for the sale of an equitable interest in shares, even where the purchaser is the sole legal owner and becomes the sole beneficial owner by merger; section 53(2) disapplies section 53(1)(c) in such cases, and section 53(1)(c) applies to equitable interests in all property, not just land.

Court Disposition

Appeal dismissed

Orders

  • Permission to advance new argument on section 53(1)(c) limited to land refused
  • Mr Bell and Mr Lyampert confirmed as sole legal and beneficial owners of their respective shares in UK