Day v Day [2005] EWHC 1455 (Ch) (23 June 2005)

Day v Day [2005] EWHC 1455 (Ch) (23 June 2005)

There was insufficient evidence of a common intention constructive trust or of a gift by John to Elsie; the property was held on a resulting trust for Elsie and John in shares proportionate to their contributions (60% Elsie, 40% John). The claimant, as successor to John's interest, is entitled to 40% of the net proceeds of sale, subject to credit for payments made by the defendant in the mistaken belief of sole entitlement.

Citation
[2005] EWHC 1455 (Ch)
Parties
Claimant: Lilian Day; Defendant: Philip John Day
Jurisdiction
England and Wales
Judgment Date
23 June 2005
Procedural Posture
Chancery Division Civil Claim / Judgment After Trial
Outcome
Claim allowed in part; claimant entitled to 40% of net proceeds of sale, subject to credits for defendant's payments.
Legal Topics
Resulting Trusts, Constructive Trusts, Beneficial Ownership, Family Property Disputes, Change of Position Defence
Equity and Trusts Property Law Resulting Trusts Constructive Trusts Beneficial Ownership Family Property Disputes Change of Position Defence

Case Brief

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Parties

Lilian Day

Claimant

Philip John Day

Defendant

Procedural Posture

Chancery Division Civil Claim / Judgment After Trial

Legal Issues

  1. 1 Whether the proceeds of sale of 1 Hubbards Road, Chorleywood, were held on trust for the claimant or the defendant
  2. 2 Whether a common intention constructive trust or a resulting trust arose on the purchase of the property
  3. 3 Whether the defendant was entitled to retain the proceeds as sole beneficiary under the will

Ratio Decidendi

There was insufficient evidence of a common intention constructive trust or of a gift by John to Elsie; the property was held on a resulting trust for Elsie and John in shares proportionate to their contributions (60% Elsie, 40% John). The claimant, as successor to John's interest, is entitled to 40% of the net proceeds of sale, subject to credit for payments made by the defendant in the mistaken belief of sole entitlement.

Court Disposition

Claim allowed in part; claimant entitled to 40% of net proceeds of sale, subject to credits for defendant's payments.

Orders

  • Claimant to recover 40% of net proceeds of sale of 1 Hubbards Road, Chorleywood, less credits for payments made by defendant to family members and for estate administration.