Generator Developments LLP v Lidl (UK) GmbH

Generator Developments LLP v Lidl (UK) GmbH

No Pallant v Morgan equity arose because there was no arrangement or understanding that Generator would obtain an interest in the Property if Lidl acquired it. The negotiations were conducted subject to contract, and Generator was aware of the risk of being excluded. The parties never reached a mutual understanding sufficient to give rise to the equity.

Parties
Claimant: Generator Developments LLP; Defendant: Lidl (UK) GmbH
Jurisdiction
England and Wales
Judgment Date
13 April 2016
Procedural Posture
Civil / Judgment
Outcome
Claim dismissed
Legal Topics
Constructive Trusts, Pallant V Morgan Equity, Joint Venture, Subject to Contract, Fiduciary Duty
Equity Property Law Commercial Law Constructive Trusts Pallant V Morgan Equity Joint Venture Subject to Contract Fiduciary Duty

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Parties

Generator Developments LLP

Claimant

Lidl (UK) GmbH

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Generator agreed to allow Lidl to purchase the Property on the basis of a mutual understanding for a joint venture and Generator's interest in the Property
  2. 2 Whether Lidl held the Property subject to a Pallant v Morgan equity
  3. 3 Whether negotiations subject to contract preclude a Pallant v Morgan equity

Ratio Decidendi

No Pallant v Morgan equity arose because there was no arrangement or understanding that Generator would obtain an interest in the Property if Lidl acquired it. The negotiations were conducted subject to contract, and Generator was aware of the risk of being excluded. The parties never reached a mutual understanding sufficient to give rise to the equity.

Court Disposition

Claim dismissed