Hewett v First Plus Financial Group Plc

Hewett v First Plus Financial Group Plc

Mr Hewett's deliberate concealment of his extramarital affair from Mrs Hewett, in the context of her reliance on his candour and fairness regarding the mortgage transaction, constituted undue influence sufficient to vitiate her consent. Since First Plus had constructive notice of the risk of undue influence, it is affected by that conduct and cannot enforce the mortgage against Mrs Hewett.

Parties
Appellant: Jayne Hewett; Respondent: First Plus Financial Group PLC
Jurisdiction
England and Wales
Judgment Date
24 March 2010
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
Appeal allowed
Legal Topics
Undue Influence, Misrepresentation, Mortgage Enforcement, Constructive Notice
Equity Family Law Property Law Undue Influence Misrepresentation Mortgage Enforcement Constructive Notice

Case Brief

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Parties

Jayne Hewett

Appellant

First Plus Financial Group PLC

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether non-disclosure of an extramarital affair by a husband to his wife when procuring her consent to a mortgage constitutes undue influence or misrepresentation sufficient to set aside the transaction as between them
  2. 2 Whether the lender (First Plus) is affected by any undue influence or misrepresentation between the spouses

Ratio Decidendi

Mr Hewett's deliberate concealment of his extramarital affair from Mrs Hewett, in the context of her reliance on his candour and fairness regarding the mortgage transaction, constituted undue influence sufficient to vitiate her consent. Since First Plus had constructive notice of the risk of undue influence, it is affected by that conduct and cannot enforce the mortgage against Mrs Hewett.

Court Disposition

Appeal allowed

Orders

  • Mortgage set aside as between Mrs Hewett and First Plus
  • Issue of enforcement of equitable charge over Mr Hewett's former beneficial interest remitted to trial judge if not resolved by agreement