Paul V Constance
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977 Year 977 ( CMLXXVII) was a common year starting on Monday of the Julian calendar. Events By place Europe * May – Boris II, dethroned emperor (''tsar'') of Bulgaria, and his brother Roman manage to escape from captivity in Const ...
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English trust 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. It sets out what will be sufficient to establish that someone has intended to create a trust, the first of the "three certainties". It is necessary that a
settlor In trust law, a settlor is a person who settles (i.e. gives into trust) their property for the benefit of the beneficiary. In some legal systems, a settlor is also referred to as a trustor, or occasionally, a grantor or donor. Where the trust is ...
's "words and actions ... show a clear intention to dispose of property ... so that someone else acquires a beneficial interest."


Facts

Mr Constance's marriage broke down, and he moved in with Ms Paul. After a workplace accident, he received £950 in damages, and following discussions with a bank manager, paid it into a new joint account. They were unmarried, so the account was put in Mr Constance's name. He said repeatedly, ‘the money is as much yours as mine’. They also paid in joint
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winnings too, and they made a £150 withdrawal, which they split. But 13 months later, Mr Constance died without a will. Ms Paul claimed the account was hers. Mrs Constance reappeared and claimed the money was hers.


Judgment

The Court of Appeal held that the parties' words and conduct demonstrated that he wished for the money to be held on trust for Mr Constance and Ms Paul jointly. Scarman LJ gave the first judgment. Bridge LJ concurred, and quoted ''
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''(1874) 18 Equity Cases 11 where Sir George Jessel MR said, "It is true he need not use the words 'I declare myself a trustee,' but he must do something which is equivalent to it, and use expressions which have that meaning, for, however anxious the court may be to carry out a man’s intentions, it is not at liberty to construe words otherwise than according to their proper meaning." Cairns LJ also concurred.


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 ...
*''
Barclays Bank Ltd v Quistclose Investments Ltd (sub nom ''Quistclose Investments Ltd v Rolls Razor Ltd'') is a leading property, unjust enrichment and trusts case, which invented a new species of proprietary interest in English law. A "Quistclose trust" arises when an asset is given to some ...
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970 Year 970 ( CMLXX) was a common year starting on Saturday of the Julian calendar, the 970th year of the Common Era (CE) and ''Anno Domini'' designations, the 970th year of the 1st millennium, the 70th year of the 10th century, and the 1st year ...
AC 567


Notes

{{case-law-stub English trusts case law Court of Appeal (England and Wales) cases 1976 in United Kingdom case law