Davis (As Trustee In Bankruptcy of Jackson) v Jackson & Anor

Davis (As Trustee In Bankruptcy of Jackson) v Jackson & Anor

The net proceeds of sale should be split equally between the trustee and Mrs. Jackson, with Mrs. Jackson credited for half of all mortgage payments made from purchase to sale. No occupation rent is payable to the trustee, as Mr. Jackson never had nor was intended to have a right of occupation, and the trustee cannot claim a better position than Mr. Jackson. Unjust enrichment does not entitle Mrs. Jackson to all proceeds; only mortgage payments made on behalf of Mr. Jackson are relevant.

Parties
Applicant: Paul Michael Davis; First Respondent: Audley Glendon Jackson; Second Respondent: Hazel Rose Jackson
Jurisdiction
England and Wales
Judgment Date
07 April 2017
Procedural Posture
Bankruptcy Appeal / Judgment on Appeal and Equitable Accounting
Outcome
Appeal against declaration dismissed; equitable account ordered; no occupation rent payable; Mrs. Jackson credited for half mortgage payments.
Legal Topics
Equitable Accounting, Beneficial Ownership, Occupation Rent, Trusts of Land, Bankruptcy, Unjust Enrichment
Property Law Insolvency Law Trusts Equitable Accounting Beneficial Ownership Occupation Rent Trusts of Land Bankruptcy +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 20 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Paul Michael Davis

Applicant

Audley Glendon Jackson

First Respondent

Hazel Rose Jackson

Second Respondent

Procedural Posture

Bankruptcy Appeal / Judgment on Appeal and Equitable Accounting

Legal Issues

  1. 1 How should the proceeds of sale of a jointly owned property be apportioned when one co-owner has paid all mortgage payments and the other has been made bankrupt?
  2. 2 Is the trustee in bankruptcy entitled to occupation rent from the co-owner in sole occupation?
  3. 3 Does unjust enrichment entitle the co-owner to all proceeds of sale?

Ratio Decidendi

The net proceeds of sale should be split equally between the trustee and Mrs. Jackson, with Mrs. Jackson credited for half of all mortgage payments made from purchase to sale. No occupation rent is payable to the trustee, as Mr. Jackson never had nor was intended to have a right of occupation, and the trustee cannot claim a better position than Mr. Jackson. Unjust enrichment does not entitle Mrs. Jackson to all proceeds; only mortgage payments made on behalf of Mr. Jackson are relevant.

Court Disposition

Appeal against declaration dismissed; equitable account ordered; no occupation rent payable; Mrs. Jackson credited for half mortgage payments.

Orders

  • Net proceeds of sale to be split equally between trustee and Mrs. Jackson, with Mrs. Jackson credited for half of all mortgage payments from purchase to sale.
  • No credits for other payments or debits for occupation rent.