Constructive trust

Parris v Williams [2008] EWCA Civ 1147 23 October; SJ 4 November

P and W were former business partners and friends. P bought two adjacent flats, both of which had separate title numbers, but which, at the time of the purchase, had no dividing wall and were occupied as one property. The flats were registered in P’s name, renovated, the dividing wall reinstated and the properties were each let. The trial judge found that P and W had reached an informal agreement at the time of the purchase to have an equal interest in the properties. It would be inequitable for P to go back on that agreement after accepting W’s help in decoration and, after receiving maintenance contributions for seven years, which had induced W to think that he had an interest in the property. P argued that there had been no express agreement at the time of the formation of the common intention as to precisely what W must do to earn his beneficial interest and therefore his claim to have acquired such an interest must fail.