Ball & Anor v De Marzo

Ball & Anor v De Marzo

Diane De Marzo is entitled to a 3/8 beneficial share in the property under the House Purchase Agreement. To the extent her contribution came from estate funds, she holds that portion on constructive trust for the estate. The doctrines of clean hands and illegality do not bar her claim, as denying relief would unjustly benefit Sonny and Leahann and prejudice the estate. The mortgage liability remains with Sonny and Leahann, and the costs order against them was within the judge's discretion.

Parties
Appellant: Sonny Michael Ball; Appellant: Leahann Claire Ball (Née Lewis); Respondent: Diane De Marzo
Jurisdiction
England and Wales
Judgment Date
21 June 2019
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed with variation
Legal Topics
Constructive Trusts, Beneficial Ownership, Illegality, Clean Hands Doctrine, Equitable Accounting, Costs Orders
Equity Trusts Property Law Constructive Trusts Beneficial Ownership Illegality Clean Hands Doctrine Equitable Accounting +1 more

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Parties

Sonny Michael Ball

Appellant

Leahann Claire Ball (Née Lewis)

Appellant

Diane De Marzo

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether Diane De Marzo is entitled to a 3/8 beneficial share in the property despite using funds partly belonging to an estate
  2. 2 Whether the doctrine of clean hands or illegality bars Diane's claim
  3. 3 How the mortgage and sale proceeds should be apportioned between the parties

Ratio Decidendi

Diane De Marzo is entitled to a 3/8 beneficial share in the property under the House Purchase Agreement. To the extent her contribution came from estate funds, she holds that portion on constructive trust for the estate. The doctrines of clean hands and illegality do not bar her claim, as denying relief would unjustly benefit Sonny and Leahann and prejudice the estate. The mortgage liability remains with Sonny and Leahann, and the costs order against them was within the judge's discretion.

Court Disposition

appeal dismissed with variation

Orders

  • Appeal dismissed on all grounds except to vary the order to declare Diane holds part of her 3/8 share on constructive trust for the estate to the extent of estate funds used.
  • Order for sale of the property stands; proceeds to be distributed per the original order, with mortgage liability on Sonny and Leahann.