Kennedy & Ors v Kennedy & Ors

Kennedy & Ors v Kennedy & Ors

The trustees executed clause 2.1(c) under a distinct and grave mistake regarding the appointment of relevant shares, making it unconscionable to leave the disposition uncorrected. The mistake was causative and fundamental to the transaction. Rectification was not available as the intention was to include the clause, but rescission of the severable clause was appropriate.

Parties
Claimant: Brian George Kennedy; Claimant: Christine Kennedy; Defendant: Patrick Brian Kennedy; Defendant: Kennedy children (first five defendants); Defendant: Kennedy grandchildren (sixth and eighth defendants); Defendant: The Commissioners for HM Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
08 December 2014
Procedural Posture
Civil / Judgment
Outcome
Clause 2.1(c) of the October 2008 Appointment set aside for mistake.
Legal Topics
Rescission for Mistake, Rectification, Capital Gains Tax, Voluntary Disposition, Trustee Mistake
Equity Trusts Tax Rescission for Mistake Rectification Capital Gains Tax Voluntary Disposition Trustee Mistake

Case Brief

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Parties

Brian George Kennedy

Claimant

Christine Kennedy

Claimant

Patrick Brian Kennedy

Defendant

Kennedy children (first five defendants)

Defendant

Kennedy grandchildren (sixth and eighth defendants)

Defendant

The Commissioners for HM Revenue and Customs

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether clause 2.1(c) of the October 2008 Appointment should be set aside for mistake
  2. 2 Whether rectification or partial rescission is available for the mistaken appointment of shares
  3. 3 Whether the trustees' mistake was sufficiently grave to warrant equitable relief

Ratio Decidendi

The trustees executed clause 2.1(c) under a distinct and grave mistake regarding the appointment of relevant shares, making it unconscionable to leave the disposition uncorrected. The mistake was causative and fundamental to the transaction. Rectification was not available as the intention was to include the clause, but rescission of the severable clause was appropriate.

Court Disposition

Clause 2.1(c) of the October 2008 Appointment set aside for mistake.

Orders

  • Clause 2.1(c) of the October 2008 Appointment is set aside.