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Lloyd's Maritime and Commercial Law Quarterly

THE REMEDIES FOR UNDUE INFLUENCE

Cheese v. Thomas

The decision of the Court of Appeal in Cheese v. Thomas 1 raises basic questions about undue influence and the remedies it generates in equity. The case concerned the “all too familiar” problems which can arise “where different generations of a family join to provide the older member with a home”.2 Cheese, then 85 years old, was persuaded by his great nephew, Thomas, to enter into an arrangement for the purchase of a house. Cheese supplied £43,000 and the remaining £40,000 was borrowed by Thomas on the security of a mortgage over the new house. It was agreed that the house would be in Thomas’ sole name and would belong to him on Cheese’s death. During his lifetime, Cheese would have the exclusive right to live in the house. Shortly after the purchase Thomas, who had been in financial difficulties from the start, defaulted on the mortgage repayments. Cheese felt his security threatened and sought repayment of his £43,000.
In the Court of Appeal, Sir Donald Nicholls, V.-C. (with whom Butler-Sloss and Peter Gibson, L.JJ., agreed) confirmed the holding of the trial judge that the transaction should be set aside for undue influence. The transaction was manifestly dis

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