Macklin & Ors v Dowsett
The Court of Appeal held that Mr Dowsett had established, on a prima facie basis, both elements required for undue influence: a relationship of ascendancy and dependency existed at the time of the 1999 agreement, and the transaction was not readily explicable by the relationship. The Deputy Judge applied the wrong legal test by focusing on manifest disadvantage rather than inexplicability. The option agreement was fundamentally inequitable and should be set aside.
- Parties
- Respondent: William Henry Macklin; Respondent: Mary Barbara Macklin; Respondent: Stuart James Macklin; Appellant: Michael John Dowsett
- Jurisdiction
- England and Wales
- Judgment Date
- 14 June 2004
- Procedural Posture
- Civil Appeal / Appeal From High Court (chancery Division)
- Outcome
- Appeal allowed
- Legal Topics
- Undue Influence, Option Agreements, Life Tenancy, Contractual Relationships
Case Brief
Summary, issues, holding and outcome
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Parties
William Henry Macklin
Respondent
Mary Barbara Macklin
Respondent
Stuart James Macklin
Respondent
Michael John Dowsett
Appellant
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division)
Legal Issues
- 1 Whether the 1999 option agreement should be set aside for undue influence
- 2 Whether the Macklins had acquired ascendancy or influence over Mr Dowsett at the time of the agreement
- 3 Whether the transaction was not readily explicable by the relationship between the parties
Ratio Decidendi
The Court of Appeal held that Mr Dowsett had established, on a prima facie basis, both elements required for undue influence: a relationship of ascendancy and dependency existed at the time of the 1999 agreement, and the transaction was not readily explicable by the relationship. The Deputy Judge applied the wrong legal test by focusing on manifest disadvantage rather than inexplicability. The option agreement was fundamentally inequitable and should be set aside.
Court Disposition
Appeal allowed
Orders
- The 1999 option agreement is set aside for undue influence.
- Costs here and below to the appellant, subject to assessment.
Full Case Text
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