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15 May 2015 / Steve Evans
Issue: 7652 / Categories: Features , Property
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Dirty hands reach further

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The law surrounding illegal conduct & trusts is in a muddle, says Steve Evans

The maxim of equity “he who comes to equity must come with clean hands” used to be as inviolable as it was pithy. For nearly two centuries, courts of equity denied equitable relief to a claimant whose conduct was tainted by illegality. Rationally enough, this was to deter persons from entering into illicit transactions.

Tinsley v Milligan

However in 1994, the House of Lords in Tinsley v Milligan [1994] 1 AC 340, [1993] 3 All ER 65, sidestepped this maxim. That case concerned a resulting trust. Two lesbian partners both contributed to the purchase of a house, but the name of one of them was deliberately kept off the title so that she could pretend she did not have that asset and she illegally claimed benefits. Nevertheless, when the house was sold following the breakdown of the relationship, she still wanted her share of the sale proceeds because of her contributions to the purchase price of the house—and she

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MOVERS & SHAKERS

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
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