Andrew Williams succeeds in proprietary estoppel & trusts appeal

November 7, 2024

Andrew Williams has succeeded on an appeal before His Honour Honour Judge Hodge KC in a complex proprietary estoppel and constructive trust matter.

Andrew’s client, Mr McCarthy, reached an oral agreement with his friend Mr Smith under which, among other matters, they would each contribute £64,000 and Mr Smith would find 8 properties in Anfield which he would purchase in his name applying the total fund towards the deposits.  They agreed that the properties would be owned by the 2 men equally, and that they would be rented out so that the rent would be applied to discharge the mortgage instalments.  Years later Mr Smith denied that Mr McCarthy had any interest in the properties.

At trial Mr McCarthy’s claim based was primarily on proprietary estoppel and/or constructive trusts and was successful.  In particular the trial judge dismissed a legal argument advanced on Mr Smith’s behalf that those claims should fail as a matter of law because the addresses of the 8 properties had not been identified at the time of the oral agreement.

Mr Smith’s legal team appealed the decision to His Honour Judge Hodge KC.  At the appeal hearing, Andrew Williams succeeded again.  In particular the appeal judge noted the trial judge’s finding that the parties had agreed that Mr McCarthy was to own half the interest in each of the 8 properties in Anfield that Mr Smith was to select and purchase after receiving Mr McCarthy’s contribution of £64,000.  The appeal judge went on to find that the fact that the two men had not agreed the specific addresses at the time of the common intention/assurances did not preclude a constructive trust or prevent an equity arising for the purposes of proprietary estoppel.

Speaking after the appeal hearing, Kelly Ellery of Ellery Tonner Law who instructed Andrew said:  “This was a very important result in favour of Mr McCarthy on an interesting point of law.”