Common-intention Consturctive Trust

Question 1

What is a common-intention constructive trust?

Answer 1

A form of constructive trust that arises in a domestic context
Applies to co-habiting couples who have acquired property in one name and their is a dispute regarding the beneficial ownership
Established in jones v kernott

Question 2

General rules

Answer 2

Established by UKSC in jones v kernott
Equity follows the law- beneficial ownership mirrors legal interest

Joint names- held in 50/50 equal shares, irrespective of respective contributions- stack v dowden. Burden on party seeking to rebut this.

Sole name- one person is the sole beneficial ownership- Thompson v hurst. Burden is on other party

Question 3

Establishing a CICT

Answer 3

Traced to Petit and petit and gissing and gissing

Elements established in llyods bank plc v rosset
- express or inferred common intention between the parties
- detriment suffered by relying on the common-intention

Question 4

Express or inferred common intention

Answer 4

• there must be an express or inferred intention between the parties to share the beneficial interest in the property
• this is fatal to a claim- Curran v Collins

Question 5

Detriment

Answer 5

• claimant must show they relied on the express intention to their detriment- grant v edwards
• claimant must have made some direct or indirect contributions as a result on the reliance of the express common intention

Direct contribution= financial contributions relating to the property- burton v liden

Indirect contribution= such as paying the bills to allow the owner to pay the mortgage

Grant v edwards- looking after children is not an indirect contribution

Question 6

Quantum of shares

Answer 6

Stack v dowden: lady hale
‘Holistic approach’- court will undertake a survey of whole course of dealings between parties
Factors include: whether there are children involved, purpose of the property, individuals characteristics