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Mark Pawlowski examines caselaw on the remedies available to victims of undue influence
- A finding of undue influence usually renders the transaction voidable at the instance of the claimant.
- Other remedies exist: damages, account of profits, equitable compensation and severance.
- Bars to relief exist: affirmation, delay amounting to acquiescence, estoppel and change of position.
The transaction will normally be set aside in its entirety where there is a finding of undue influence. In Allied Irish Bank v Byrne [1995] 2 FLR 325, for example, the wife was induced to mortgage a house of which she was the sole owner as security for her husband’s indebtedness by a false representation made by him that her liability was limited to £35,000. In reality, the charge was for an unlimited sum. Mr Justice Ferris held that setting aside a charge was ‘an all or nothing process’ and, accordingly, the wife had the right to have the whole charge set aside as against her husband and the bank had constructive notice of that
