Capehorn v Harris

Capehorn v Harris

The judge erred by imputing an intention at the first stage of the constructive trust analysis rather than finding an actual agreement. There was no agreement that Mr Harris should have a beneficial interest in Sunnyside Farm or 19 Beaumont Road, nor that Mrs Capehorn should have a beneficial interest in the company. The order for repayment by Mrs Capehorn was also erroneous as there was no claim or basis for it.

Parties
Applicant: Linda Maureen Capehorn; Respondent: Michael Benjamin Harris
Jurisdiction
England and Wales
Judgment Date
08 July 2015
Procedural Posture
Civil Appeal / Appeal From Central London County Court Judgment
Outcome
appeal allowed, cross-appeal dismissed
Legal Topics
Constructive Trusts, Beneficial Interest, Division of Assets, Unmarried Cohabitees
Property Law Equity Constructive Trusts Beneficial Interest Division of Assets Unmarried Cohabitees

Case Brief

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Parties

Linda Maureen Capehorn

Applicant

Michael Benjamin Harris

Respondent

Procedural Posture

Civil Appeal / Appeal From Central London County Court Judgment

Legal Issues

  1. 1 Whether Mr Harris had a beneficial interest in Sunnyside Farm or 19 Beaumont Road
  2. 2 Whether Mrs Capehorn had a beneficial interest in shares of LMC Trade Sales Ltd
  3. 3 Proper application of the two-stage test for common intention constructive trusts

Ratio Decidendi

The judge erred by imputing an intention at the first stage of the constructive trust analysis rather than finding an actual agreement. There was no agreement that Mr Harris should have a beneficial interest in Sunnyside Farm or 19 Beaumont Road, nor that Mrs Capehorn should have a beneficial interest in the company. The order for repayment by Mrs Capehorn was also erroneous as there was no claim or basis for it.

Court Disposition

appeal allowed, cross-appeal dismissed

Orders

  • Mrs Capehorn is sole legal and beneficial owner of Sunnyside Farm and 19 Beaumont Road.
  • Mr Harris is sole legal and beneficial owner of shares in LMC Trade Sales Ltd.