Lecture Notes: Resulting Trusts and Related Legal Concepts

Overview

• Continuation of discussion on resulting trusts, focusing on apparent gift-style cases.
• Key focus on the voluntary transfer of property and the impact of statutory provisions.

Apparent Gift Cases

• Types of Apparent Gifts:
  • Purchase price type
  • Voluntary transfer of property

Statutory Provisions

• Law of Property Act 1925, Section 60, Subsection 3:
  • Impact on presumption of resulting trusts in voluntary conveyances.
  • Cases:
    • Lohia and Alley vs. Cannes: Suggested abolition of the presumption in voluntary transfers.
    • Prest (Supreme Court Case): Presumption of resulting trust invoked without reference to Section 60(3).

Key Cases

• NCA vs. DONG:
  • Transfer of property for no consideration, presumption of resulting trust considered.
  • Chief Master Marsh: Section 60(3) seen as a word-saving device, not abolishing the presumption.
• Ali and Dink:
  • Confirmation of NCA vs. DONG approach.
• Vinogradov (1935):
  • Resulting trust in personal property: Voluntary transfer with no motive evidence leads to presumption.

Presumption of Advancement

• Counter-Presumption of Equity:
  • Arises in specific relationships (e.g. father to child, husband to wife).
  • Historical context: Reflects 19th-century gender norms and dependency assumptions.

Modern Developments

• Judicial activism in Commonwealth countries addressing gender bias.
  • Nelson vs. Nelson (Australia): Presumption applies equally to mothers and fathers.
  • Close Invoice Finance (UK): Presumption applied from mother to daughter.

Statutory Context

• Equality Act 2010, Section 199: Abolishment of presumption of advancement (not in force).
• European Context: Article 5 of Protocol 7 on equality in property rights.

Illegality and Resulting Trusts

• Maxim "He who comes to equity must come with clean hands"
  • Consideration of evidence of illegality to rebut presumption of advancement.

Key Case

• Chettiar vs. Chettiar:
  • Lord Denning's stance against introducing evidence of illegal purpose.
• Law Commission:
  • Recommendations for statutory reform (2010 report not adopted).

Patel vs. Mirza (Supreme Court)

• New Approach to Illegality:
  • Public policy-driven approach considering integrity of legal system.
  • Moves away from old rules (Reliance Principle, Withdrawal Exception).

Factors Considered

• Purpose of the law transgressed, public interest, and the range of factors influencing decision.

Conclusion

• Future Discussions:
  • Upcoming focus on constructive trusts of the family home.
• Key Takeaway:
  • Current law assesses harm to public policy or legal integrity in permitting claims.