Undue influence Flashcards
(9 cards)
Joint shareholders in a company. One was terminally ill and vulnerable and the second brought him to a pub where they agreed that, upon either’s death, the survivor would take full control of the business. This excluded wife and eight children, making it an improvident decision. Actual undue influence was established.
O’Flanagan v. Ray-Ger [1983] IEHC 83
Plaintiff entered the convent at 18 as a lodger, with an understanding that she could consult friends before becoming a nun. Actively prevented her from seeking advice from family- Two years after becoming a nun, she transferred property to the convent without legal advice, including real property when she was in poor health. Presumption of undue influence arose due to the close relationship between the plaintiff and the convent. - The convent failed to rebut this presumption.
The court set aside the transfer, finding that the plaintiff did not act with free and independent judgment.
Whyte v. Meade
Plaintiff (27 years old) joined a Protestant sisterhood after being introduced by her spiritual adviser, who was also the spiritual leader of the sisterhood. She gave property to the sisterhood in line with her vows of poverty and obedience. After 8 years, she left the sisterhood, and 6 years later, she sought to reclaim her unspent property. No direct pressure was placed on her beyond the sisterhood’s rules. Independent legal advice was necessary, even if the plaintiff would have disregarded it.
while undue influence, bc of delay it was not granted
Allcard v. Skinner [1887]
- Plaintiff, newly of age, signed a guarantee for her mother’s debts while still living with her.
- The guarantee’s effect was explained, but she had no opportunity for independent legal advice.
- The bank sought to enforce the guarantee.
- Presumption of undue influence arose due to the parent-child relationship.
The bank failed to rebut the presumption as no real independent advice was provided.
McMackin v. Hibernian Bank [1905] 1 IR 296
- 79-year-old father, who was frail, depressed, and dependent on his son, transferred his pub and home to the son.
- No independent legal advice, and daughters were not consulted despite the father’s previous intent to provide them with a home.
- Presumption of undue influence arose.
- Defendant (son) failed to rebut it, as there was no proof the father spoke to a solicitor or understood the transfer deed.
- Solicitor’s advice was inadequate as he was unaware of family circumstances.
Carroll & Carroll v. Carroll [2000]
Elderly alcoholic farmer, isolated and vulnerable, transferred land to his neighbour at a fraction of its value. - Presumption of undue influence arose due to the farmer’s bereavement, loneliness, alcoholism, and ill health.
Transaction was grossly improvident and to the farmer’s clear disadvantage.
McGonigal v. Black
- Wife misled by her husband into believing she was only providing security for £35,000.
- 2B relationship- undue influence based on facts between spouses- constructive notice- no benefit to wife, no independent legal advice
- In reality, her security was unlimited, and her husband incurred £200,000 in debt.
- Bank argued it should still recover £35,000, as that was what the wife had agreed to.
- Ferris J rejected this, holding that setting aside a transaction is all-or-nothing—courts should not rewrite agreements to match misrepresentations.
Allied Irish Bank v. Byrne [1995]
- a women gave into trust money for a spiritual confessor
- never complained about it- after she ceased, her brother wanted to set it aside
- full of age and competent making the gift
- not set aside - McDermott believes not very reflective
Kirwan v Cullen
not easy to establish actual undue influence
- found the contract OK
Ffrench O´Carroll v Ffrench O´Carroll
