COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE HIGH COURT
CHANCERY DIVISION (Mr Michel Kallipetis QC
Sitting as a Deputy Judge)
Strand, London, WC2A 2LL | ||
B e f o r e :
SIR CHRISTOPHER SLADE
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UCB GROUP Ltd | Appellant | |
- and - | ||
GILLIAN HEDWORTH | Respondent |
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Smith Bernal Reporting Limited, 190 Fleet Street
London EC4A 2AG
Tel No: 020 7421 4040, Fax No: 020 7831 8838
Official Shorthand Writers to the Court)
Mr Geoffrey Zelin (instructed by Wholley Goodings) for the Respondent
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AS APPROVED BY THE COURT
Crown Copyright ©
Lord Justice Jonathan Parker :
“a. In about 1990 I allowed my husband, Peter John Alan Hedworth, to sell my antique furniture and works of art and to keep the proceeds of sale in consideration for him transferring to me all his real property interests including [the Property].
b. By a deed dated in about January 1990 (which deed is now lost) Peter John Alan Hedworth purported to transfer all his real property interests to me. The said transfers were not registered but were effective to transfer to, or vest in, me the beneficial interest in all his property interests including [the Property].
c. Alternatively, by the said deed Peter John Alan Hedworth declared himself trustee of all his real property interests (including [the Property]) to be held on trust for me.
d. Alternatively, by reason of the agreement stated in paragraph ‘a’ above and my reliance thereon, from about January 1990 Peter John Alan Hedworth has held [the Property] on constructive trust for me.
e. At the time of the grant and registration of [the UCB Charge] I was in receipt of rents and profits of [the Property]. In the premises, my beneficial interest in [the Property] is an overriding interest within the meaning of section 70(1)(g) of [the Act] to which the charge is subject.”
“All registered land shall, unless under the provisions of this Act the contrary is expressed on the register, be deemed to be subject to such of the following overriding interests as may be for the time being subsisting in reference thereto, and such interests shall not be treated as incumbrances within the meaning of this Act, (that is to say) – ...”
“The rights of every person in actual occupation of the land or in receipt of the rents and profits thereof, save where enquiry is made of such person and the rights are not disclosed.”
“ ‘Rent’ includes a rent service or a rentcharge, or other rent, toll, duty, royalty, or annual or periodical payment, in money or money’s worth, issuing out of or charged upon land, but does not include mortgage interest.”
“An interest belonging at the time of disposition to a person in actual occupation, so far as relating to land of which he is in actual occupation, except for –
(a) ....
(b) an interest of a person of whom inquiry was made before the disposition and who failed to disclose the right when he could reasonably have been expected to do so;
(c) ....
(d) ....”
“.... there is a fundamental issue which requires a determination and that is the precise terms of the arrangement between Mr and Mrs Hedworth.”
“In my judgment, the court’s decision on the legal position will depend entirely upon its findings as to the transaction between Mr and Mrs Hedworth and the precise nature of her interest in [the Property].”
“Important point which would dispose of action if Court of Appeal decides that I was wrong."
Sir Christopher Slade: