Binions v Evans
A purchaser who bought a cottage expressly subject to a widow's right to live there for life, and paid a reduced price, held it on constructive trust for her.
Facts
Mrs Evans's husband worked for the Tredegar Estate, and lived in a cottage owned by the estate. After he died, the estate agreed that Mrs Evans could live in the cottage rent free for the rest of her life. The estate later sold the cottage to Mr and Mrs Binions, expressly subject to Mrs Evans's right of occupation, and because of that, the price was reduced. Mr and Mrs Binions then sought possession against Mrs Evans.
Legal principle
The Court of Appeal held that Mrs Evans was entitled to remain. Lord Denning MR said that, where a purchaser takes land expressly subject to a contractual licence, and pays less because of it, the court will impose a constructive trust to prevent the purchaser from going back on its undertaking. Megaw LJ and Stephenson LJ preferred to decide the case on the basis that Mrs Evans was a tenant for life under the Settled Land Act 1925. The constructive trust reasoning was later approved, in a narrower form, in Ashburn Anstalt v Arnold.
Related cases on leases and licences
- AG Securities v Vaughan; Antoniades v Villiers [1990] 1 AC 417
- Ashburn Anstalt v Arnold [1989] Ch 1
- Aslan v Murphy [1990] 1 WLR 766
- Berrisford v Mexfield Housing Co-operative Ltd [2011] UKSC 52, [2012] 1 AC 955
- Bruton v London & Quadrant Housing Trust [2000] 1 AC 406
- Errington v Errington and Woods [1952] 1 KB 290
- Facchini v Bryson [1952] 1 TLR 1386
- Hammersmith and Fulham London Borough Council v Monk [1992] 1 AC 478
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