Shiel v McKeon [2006] IEHC 194 (31 May 2006)

Shiel v McKeon [2006] IEHC 194 (31 May 2006)

The court held that while an informal arrangement was entered into between the parties sufficient to lead Mr. Shiel to believe that Mr. McKeon would purchase the property in part trust for him, Mr. Shiel's failure to disclose his weakened negotiating position to Mr. McKeon meant that he did not come to equity with clean hands. Therefore, equity did not require Mr. McKeon to comply with the informal arrangement, and the plaintiff's claim was dismissed.

Citation
[2006] IEHC 194
Parties
Plaintiff: John Shiel; Defendant: Peter McKeon
Jurisdiction
Ireland
Judgment Date
31 May 2006
Procedural Posture
Civil / High Court Judgment
Outcome
Plaintiff's claim dismissed
Legal Topics
Constructive Trusts, Pallant V. Morgan Equity, Equitable Remedies, Property Purchase Arrangements
Equity Property Law Constructive Trusts Pallant V. Morgan Equity Equitable Remedies Property Purchase Arrangements

Case Brief

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Parties

John Shiel

Plaintiff

Peter McKeon

Defendant

Procedural Posture

Civil / High Court Judgment

Legal Issues

  1. 1 Whether an informal arrangement between competing purchasers gives rise to a constructive trust under the Pallant v. Morgan equity
  2. 2 Whether the plaintiff is entitled to equitable relief given the circumstances of the arrangement

Ratio Decidendi

The court held that while an informal arrangement was entered into between the parties sufficient to lead Mr. Shiel to believe that Mr. McKeon would purchase the property in part trust for him, Mr. Shiel's failure to disclose his weakened negotiating position to Mr. McKeon meant that he did not come to equity with clean hands. Therefore, equity did not require Mr. McKeon to comply with the informal arrangement, and the plaintiff's claim was dismissed.

Court Disposition

Plaintiff's claim dismissed