Bannister V Bannister
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''Bannister v Bannister'' 9482 All ER 133 is an
English trusts law English trust law concerns the protection of assets, usually when they are held by one party for another's benefit. Trust law, Trusts were a creation of the English law of English property law, property and English contract law, obligations, a ...
case, upholding a
constructive trust In trust law, a constructive trust is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding a legal property right which they should not possess ...
of land against a relative who took title to the land, with a promise back to the transferor she could remain in her cottage for life.


Facts

Mrs Bannister inherited two cottages when her husband died, including the one where she lived. She transferred them to her brother-in-law for under market value (at an undervalue). They orally agreed she would remain rent-free for life in her cottage. He sought to evict her.


Judgment

Scott LJ held that for a constructive trust: #The conveyance need not be obtained by fraud; #The transfer need not use technical language of a trust; #No weight needed to be given to the fact that the conveyance was at an undervalue. The fraud consists in the denial of the trust. The proprietary right was given to Mrs Bannister under constructive trust. 9482 All ER 133 at page 136 At common law, the promise made to allow Mrs Bannister to stay in the property was not enforceable since it was not recorded in writing (as required by s40
Law of Property Act 1925 The Law of Property Act 1925 ( 15 & 16 Geo. 5. c. 20) is an act of the Parliament of the United Kingdom. It forms part of an interrelated programme of legislation introduced by Lord Chancellor Lord Birkenhead between 1922 and 1925. The progr ...
—now s2 of the
Law of Property (Miscellaneous Provisions) Act 1989 The Law of Property (Miscellaneous Provisions) Act 1989 (c. 34) is a United Kingdom act of Parliament, which laid down a number of significant revisions to English property law. Nature of reforms The Act introduced several distinct reforms: :* T ...
). The upholding of Mrs Bannister's right to reside in the property follows the application of the equitable maxim, '' equity will not allow a statute to be used as a cloak for fraud''.


See also

*
English trusts law English trust law concerns the protection of assets, usually when they are held by one party for another's benefit. Trust law, Trusts were a creation of the English law of English property law, property and English contract law, obligations, a ...
*
English land law English land law is the law of real property in England and Wales. Because of its heavy historical and social significance, land is usually seen as the most important part of English property law. Ownership of land has its roots in the feudal sy ...
*
English property law English property law is the law of acquisition, sharing and protection of valuable assets in England and Wales. While part of the United Kingdom, many elements of Scots property law are different. In England, property law encompasses four main t ...


Notes

{{reflist, 2 English trusts case law English land case law 1948 in case law 1948 in British law Court of Appeal (England and Wales) cases