Beneficial entitlement: no longer doing justice?

Discusses the House of Lords ruling in Stack v Dowden on the size of each legal owner's share of the equity in the family home in the event of the relationship breakdown of an unmarried couple. Considers whether the parties intended their beneficial interests to be different to their legal interests in the property. Comments on the court's primary concern of establishing, from the parties' conduct, their intention as regards beneficial ownership. Looks at whether indirect financial contributions give rise to a beneficial interest under a constructive trust and notes the relevance of the doctrine of proprietary estoppel.

Beneficial entitlement after Stack

Reviews the approach adopted in Stack v Dowden to determination of beneficial interests in a property purchased in the joint names of cohabitees. Considers two cases which extended the Stack v Dowden approach to encompass the beneficial entitlement of family members, namely: (1) Adekunle v Ritchie on beneficial entitlement in a property jointly purchased by a mother and son, where the transfer document contained no express declaration of trust; and (2) Abbott v Abbott on the impact of a wife's indirect financial contributions in determining her beneficial entitlement in the matrimonial home.

Duty to mitigate in leasehold law

Discusses by reference to case law, including Commonwealth authorities, the rights and duties of landlords where demised premises are abandoned by a tenant who has defaulted on the rent, including the remedies available to the landlord, the limitations on his right to sue for loss of rent due between abandonment and expiration of the term, and the applicability of the contractual doctrine of mitigation of damages in leasehold law. Examines the Court of Appeal decision in Reichman v Beveridge on the duty of mitigate loss in an action merely seeking recovery of rent as it accrues due.

Giving credit where it's due

Discusses the entitlement to occupation rent where one party to a relationship no longer lives in the matrimonial or family home in which he/she has an interest and a right of occupation. Describes the case law illustrating that forceful exclusion of the non-occupying party is not a prerequisite to entitlement to an occupation rent. Considers the calculation of the parties' respective credits where the occupying party has made mortgage repayments since the separation and the other is entitled to an occupation rent.

Patch me if you can

Considers the circumstances in which repair works may be more appropriate than replacement where a landlord is attempting to claim under a repair covenant. Examines case law on which method is more appropriate and on the standard of remedial work to be undertaken. Reflects on the situation where performance of remedial works would be futile. Comments on the Technology and Construction Court ruling in Carmel Southend Ltd v Strachan & Henshaw Ltd on whether a landlord had been correct to carry out overcladding works to a roof where surveyors had agreed that patch repairs would be adequate.

Penalties on car rental agreements

Examines the Cambridge County Court ruling in Volkswagen Financial Services (UK) Ltd v Ramage on whether a clause in a car hire contract which allowed the finance company, upon repudiation of the contract after the hirer fell into arrears, to claim compensation equivalent to the lost future rental payments was unenforceable as a penalty clause, rather than being a reasonable pre-estimate of actual loss. Refers to case law including the Court of Appeal ruling in Anglo Auto Finance Co v James in considering the differing losses which would occur during the course of the hire term according to the natural depreciation of the value of the car. Notes the reasoning of the Court on: (1) contracts of hire compared with hire purchase agreements; (2) the comparative position of the parties and the freedom to contract elsewhere; and (3) the reasonable prediction of future losses.

Private purpose trusts: a reform proposal

Argues for the introduction of statutory reform to enable valid private purpose trusts to be created by those wishing to make testamentary gifts for non-charitable purposes, with no human beneficiary. Examines the rationale employed in cases where the validity of a private purpose trust has been upheld despite the absence of a human beneficiary. Considers the approaches adopted by five offshore jurisdictions when introducing purpose trust legislation. Identifies key features to be included in any new purpose trust legislation introduced in the UK.

Termination of tenancies for tenant default: Law Commission's draft Bill

Reviews key proposals of a draft Bill set out in Command Paper: The Law Commission: Termination of Tenancies for Tenant Default (Cm.6946), aimed at replacing the existing law on forfeiture of tenancies. Summarises the main elements of the proposed termination action by landlords, the events justifying such an action, the time limits for serving default notices, the revised range of court orders available and the considerations influencing which type of order to make. Examines the position of qualifying interest holders and the circumstances in which summary termination notices are prohibited.

Forfeiture relief

Looks at the common law forfeiture rule, preventing a person who has unlawfully killed another from profiting from the death, and the granting of relief under the Forfeiture Act 1982. Reviews case law on the forfeiture rule, its modification under s.2 in the interests of justice and the provision under s.3 that the rule does not preclude an application under the Inheritance (Provision for Family and Dependants) Act 1975. Reviews the Chancery Division ruling in Land v Land (Deceased), highlighting the ability for a claimant to choose whether to seek relief from forfeiture under s.2 of the 1982 Act or pursue a claim for reasonable financial provision from a deceased's estate under s.2 of the 1975 Act.

Return of deposits

Explores case law illustrating the circumstances in which the courts are likely to order the return of a deposit in the event of a buyer's default. Notes the unwillingness of the courts to apply the rule on penalties to deposits and discusses the court's discretion under the Law of Property Act 1925 s.49(2) to order repayment. Focuses on the Chancery Division ruling in Aribisala v St James Homes (Grosvenor Dock) Ltd giving guidance on the circumstances in which the discretion under s.49(2) should be exercised.

Returning to deposits...

Examines the Court of Appeal ruling in Midill (97PL) Ltd v Park Lane Estates Ltd on whether the court should exercise its discretion to return a deposit paid under a contract for the sale of a property where, despite the claimant having defaulted on its purchase, the owner obtained a higher price than would have been paid by the claimant when it subsequently sold the property to a third party. Considers the need for special or exceptional circumstances to be present to override the rule that deposits were to be forfeited upon the purchaser's default.

Confidentiality or disclosure?

Considers the discretion of the trustees to disclose the settlor's wishes to the beneficiaries of a family discretionary trust. Discusses the confidentiality principle relating to family discretionary trusts and whether a settlor's wish letter falls within the scope of that principle. Sets out the guidance of the court in Breakspear v Ackland for trustees faced with a request for disclosure from a beneficiary.

Insolvency: ordering a sale of the family home

Comments on the Chancery Division ruling in Nicholls v Lan on whether the interests of a bankrupt husband's creditors prevailed over those of the wife, despite her circumstances being exceptional within the meaning of the Insolvency Act 1986 s.335A on account of her suffering from chronic schizophrenia, where the wife was the joint owner of another property which could be realised to buy out the trustee in bankruptcy's half share in the equity of the matrimonial home.

A just claim?

Discusses the law relating to the payment of occupation rent to a co-owner by the party remaining in the property after a relationship breakdown both under the Trusts of Land and Appointment of Trustees Act 1996 and where the Act is not applicable. Considers, with reference to the Chancery Division decision in Re Barcham, whether a trustee in bankruptcy acting on behalf of the non-occupying person can claim an occupation rent under the court's equitable jurisdiction.

Showing interest

Comments on the Chancery Division judgment in Jones v Kernott on the beneficial interests of former cohabiting partners in their family home. Considers whether the partners must have intended to vary their shares when the man stopped paying the mortgage, bought a house in his own name and went to live there. Discusses whether the court could take into account what was considered fair between the partners based on the whole course of dealing, including non-payment of maintenance for children.