Julie Palmer & Anor v Daniel Sans

Julie Palmer & Anor v Daniel Sans

The property was held on constructive trust for Daniel Sans because there was a common intention agreement at the time of acquisition, supported by detrimental reliance including the transfer of an Audi car and payment of £15,000 to discharge the mortgage. The lack of documentary evidence is outweighed by the factual matrix, including the undervalue of the property, continued occupation by the Sans family, and absence of rent. Therefore, the property did not form part of Mr Collins' bankruptcy estate and the section 339 application fails.

Parties
Applicant: Julie Palmer; Applicant: Andrew Hook; Bankrupt: Shaun Collins; Respondent: Daniel Sans
Jurisdiction
England and Wales
Judgment Date
11 August 2024
Procedural Posture
Insolvency/bankruptcy / Judgment After Trial of Application for Declarations/orders Under Section 339 Insolvency Act 1986
Outcome
Application dismissed; declaration that property held on constructive trust for Daniel Sans.
Legal Topics
Constructive Trusts, Bankruptcy Estate, Transaction at Undervalue, Beneficial Ownership
Insolvency Trusts Property Law Constructive Trusts Bankruptcy Estate Transaction at Undervalue Beneficial Ownership

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Parties

Julie Palmer

Applicant

Andrew Hook

Applicant

Shaun Collins

Bankrupt

Daniel Sans

Respondent

Procedural Posture

Insolvency/bankruptcy / Judgment After Trial of Application for Declarations/orders Under Section 339 Insolvency Act 1986

Legal Issues

  1. 1 Whether Shaun Collins held the property on trust for Daniel Sans at the time of acquisition in 2013
  2. 2 Whether a constructive trust arose by oral agreement and detrimental reliance
  3. 3 Whether the transfer of the property in 2021 was a transaction at an undervalue under section 339 Insolvency Act 1986

Ratio Decidendi

The property was held on constructive trust for Daniel Sans because there was a common intention agreement at the time of acquisition, supported by detrimental reliance including the transfer of an Audi car and payment of £15,000 to discharge the mortgage. The lack of documentary evidence is outweighed by the factual matrix, including the undervalue of the property, continued occupation by the Sans family, and absence of rent. Therefore, the property did not form part of Mr Collins' bankruptcy estate and the section 339 application fails.

Court Disposition

Application dismissed; declaration that property held on constructive trust for Daniel Sans.

Orders

  • No order on section 339 application; property declared held on constructive trust for Daniel Sans.