Eleftheriou& Ors v Costi & Anor

Eleftheriou& Ors v Costi & Anor

There was no binding contract or tripartite arrangement; the payment of £150,000 by the defendants was made in anticipation of a transaction (lease and business sale) that was never completed. The claimants are not entitled to retain the money except for sums due for use and occupation and stock. The defendants are entitled to restitution for total failure of consideration, but no purpose trust arose as the necessary requirements were not met. The claimants are entitled to £31,650 for occupation and £5,000 for stock; the balance must be repaid to the defendants.

Parties
Claimant: Lefterakis Eleftheriou; Claimant: Anastasios Karageorge; Claimant: Helen Karageorge; Defendant: Glen Costi; Defendant: Christine Sydney Costi
Jurisdiction
England and Wales
Judgment Date
18 July 2013
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the defendants in restitution, subject to set-off for occupation and stock.
Legal Topics
Total Failure of Consideration, Resulting Trust, Tenancy at Will, Restitution, Quistclose Trust, Estoppel, Lease Agreements
Contract Law Property Law Equity Total Failure of Consideration Resulting Trust Tenancy at Will Restitution Quistclose Trust +2 more

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Parties

Lefterakis Eleftheriou

Claimant

Anastasios Karageorge

Claimant

Helen Karageorge

Claimant

Glen Costi

Defendant

Christine Sydney Costi

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Are the defendants liable to pay for use and occupation of the property or as damages for trespass?
  2. 2 Are the claimants entitled to retain the monies received from the defendants or any part thereof?
  3. 3 Are the claimants entitled to be paid a further £25,000/£30,000?

Ratio Decidendi

There was no binding contract or tripartite arrangement; the payment of £150,000 by the defendants was made in anticipation of a transaction (lease and business sale) that was never completed. The claimants are not entitled to retain the money except for sums due for use and occupation and stock. The defendants are entitled to restitution for total failure of consideration, but no purpose trust arose as the necessary requirements were not met. The claimants are entitled to £31,650 for occupation and £5,000 for stock; the balance must be repaid to the defendants.

Court Disposition

Judgment for the defendants in restitution, subject to set-off for occupation and stock.

Orders

  • Defendants to pay claimants £31,650 for use and occupation of the property.
  • Defendants to pay claimants £5,000 for stock.