Vickers v Jackson [2011] EWCA Civ 725 (24 May 2011)

Vickers v Jackson [2011] EWCA Civ 725 (24 May 2011)

The charge was a sham, intended to deceive creditors, and no genuine debt existed between the parties. As no money was due under the charge, it could not be enforced, and the entries protecting it on the Land Charges Register must be vacated. The doctrine of illegality prevents the court from assisting a party to enforce obligations arising under an illegal contract.

Citation
[2011] EWCA Civ 725
Parties
Appellant: Vickers; Respondent: Jackson
Jurisdiction
England and Wales
Judgment Date
24 May 2011
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Sham Transactions, Illegality in Contracts, Enforcement of Security Interests, Land Charges, Mortgage Law
Property Law Contract Law Equity Sham Transactions Illegality in Contracts Enforcement of Security Interests Land Charges Mortgage Law

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 3 Authorities cited 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Vickers

Appellant

Jackson

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether a sham charge intended to deceive creditors can be enforced
  2. 2 Whether the doctrine of illegality prevents relief to the party seeking to set aside the sham charge
  3. 3 Whether the respondent is entitled to enforce a legal charge where no underlying debt exists

Ratio Decidendi

The charge was a sham, intended to deceive creditors, and no genuine debt existed between the parties. As no money was due under the charge, it could not be enforced, and the entries protecting it on the Land Charges Register must be vacated. The doctrine of illegality prevents the court from assisting a party to enforce obligations arising under an illegal contract.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Entries relating to the charge to be removed from the Land Charges Register