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Constructive trusts over the family home: lessons to be learned from other commonwealth jurisdictions?

Published online by Cambridge University Press:  02 January 2018

Simone Wong*
Affiliation:
Kent Law School, University of Kent at Canterbury

Extract

Ownership of the family home is usually not disputed until either the relationship between the spouses or cohabitants breakdown or there is a competing claim over the property by a third party. In such circumstances, determination of ownership rights becomes imperative. The Matrimonial Causes Act 1973 gives the courts adjustive powers to deal with disputes between spouses on the breakdown of the marriage. Notwithstanding this, there may be circumstances where it will be necessary or desirable to determine property rights between spouses. Furthermore, the adjustive powers of the courts are not applicable to cohabitants. Thus, in the absence of legal co-ownership in the family home, cohabitants and spouses who cannot rely on the 1973 Act will have to establish an equitable interest in the property. The analyses relied on are primarily based on property law and trusts principles and, more particularly, imputed trusts and proprietary estoppel. Under trusts principles, imputed trusts are usually taken to refer to resulting and constructive trusts.

Type
Research Article
Copyright
Copyright © Society of Legal Scholars 1998

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References

1. Section 28(3).

2. Eg where the marriage has not broken down or the adjustive powers of the courts are inapplicable because a spouse's remarriage.

3. Tinsley v Milligan [1992] Ch 310, CA; [1993] 3 WLR 126, HL. Cf Re Sharpe [1980] 1 WLR 219, Risch v McFee [199] 1 FLR 105 and Richards v Dove [1974] 1 All ER 888, where the financial contributions made were construed by the courts as being loans rather than for the purpose of acquiring a share in the property. This raises the question of the construction to be given to contributions made for the purposes of ascertaining whether a resulting trust actually arises.Google Scholar

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15. See above n 10. Although Eves and Grant v Edwards were decided prior to Rosser and therefore cannot be attributed to it per se, these cases were not expressly overruled in Rosset. Thus, it would seem that the reasoning of the courts in both these cases for finding a common intention remains sound.

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36. Ibid. pp 104–109. Pahl notes that male control is more common in families with relatively higher income levels and is usually associated with the allowance and independent management systems. Male control is also evident in the pooling system, especially in families with higher income levels or where the man is the sole wage-earner.

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58. Cf Warburton above n 51, who argues that any attempt to assimilate constructive trusts and proprietary estoppel appears to be an attempt to re-introduce by the backdoor Lord Denning's ‘new model constructive trust’ and will expose claimants and third parties to the same uncertainty which the new model constructive trust was criticised for.

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71. Cf Miller v Sutherland (1991) 14 Fam LR 416, where no financial contributions were made towards the acquisition of the property but the claimant succeeded on the basis of the substantial renovation work done by her and her family on the defendant's property. There is, however, nothing in the decision to suggest that the unconscionability-based constructive trust will allow purely domestic services to give rise to a similar result. In fact, it is arguable that, although couched in terms of unconscionability, the court's reasoning was not very different from that taken in Eves, where the plaintiff wielded a fourteen pound hammer. The nature of the non-financial contributions were perceived as going beyond typical ‘women's work’ and were capable of economic valuation.Google Scholar

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83. Birks defines free acceptance as one ‘where a recipient knows that a benefit is being offered to him non-gratuitously and where he, having, the opportunity to reject, elects to accept’ (P Birks Introduction to the Law of Restitution (Oxford: Clarendon Press, 1986) 265). For Birks, free acceptance not only establishes the enrichment but also the unjust factor. This argument has been challenged by both Burrows and Mead: A S Burrows ‘Free Acceptance and the Law of Restitution’ (1988) 104 LQR 576; G Mead ‘Free Acceptance: Some Further Considerations’ (1989) 105 LQR 460. Using Birks' example of the window-cleaner, Burrows, who is supported by Mead, contends that the window-cleaner, in offering his unrequested services, is assuming the role of risk-taker in expecting payment from the recipient. The law of restitution should not be expected to undertake the task of protecting that risk ((1988) 104 LQR 576 at 578). However, Burrows agrees with Birks that there is an unjust enrichment in the situations where services are rendered, albeit unrequested, to the recipient under a mistake.

84. Scane above n 81 at 295.

85. For a detailed discussion of the issue of proprietary link, see Scane above n 81 at 287–304. Cf Gardner's argument that incorporating trust and collaboration within the unjust enrichment analysis will remove problems relating to voluntariness and subjective devaluation by the defendant. It would seem that trust and collaboration raises a similar presumption as that discussed by Scane.

86. Paciocco, DThe Remedial Constructive Trust: a Principled Basis for Priority over Creditors’ (1989) 68 Can Bar Rev 315.Google Scholar

87. M Welstead ‘Domestic Contributions and Constructive Trusts: The Canadian Perspective’ (1987) Denning LJ 151.

88. Cases like Pettkus (20 years), Sorochan (42 years), Pirie v Leslie (1988) 29 ETR 246 (Man QB) (nine years) and Boucher v Koch (1988) 14 RFL (3d) 443 (Alta CA) (20 years) all illustrate how the length of the relationship may be an influential factor in determining whether equitable relief is to be granted.Google Scholar

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93. Above n 81.

94. Daily Mail, 6 November 1996.

95. Above n 59.