ON APPEAL FROM THE HIGH COURT OF JUSTICE
(Family Division)
Mr Justice Cobb
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE NEWEY
and
MR JUSTICE MACDONALD
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Una Mary Kelly |
Respondent |
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- and - |
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John Norman Pyres |
Appellant |
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Charles Hale QC and Jonathan Rustin (instructed by Anthony Gold) for the Respondent
Hearing dates: 21 March 2018
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Crown Copyright ©
Lady Justice King:
Backdrop to the Appeal
"It may be an irony that the more finely balanced the decision, and the more acutely the judge has agonised over his decision, the less prospect there is of that decision being successfully appealed. The understandable reaction of the disappointed party is that the judge has got it wrong; therein lies the fallacy. The fallacy was exposed at the House of Lords in G v G…"
"6. The task of establishing the domicile of these parties, on these particularly unusual and complex facts, is, I suspect, about as difficult a forensic exercise as one might encounter in a case of this kind."
Background
a) her habitual residence (although this was not pursued) and
b) her English domicile at the date of the petition.
"I decided to pursue post-graduate education and a career in England and in October 1995 I moved to Manchester to study for a Master's degree at the University of Manchester. I was awarded the Master's in July 1997. Upon completing my Master's I decided to apply for employment with UK companies and organisations with Britain being the base for my adult life. I never considered moving to Ireland as an option then or for that matter now."
The judge's findings:
i) Throughout her adult life the wife has travelled extensively for work but "there appears to have been, throughout, an anchor laid in London." From as early as 1998 or thereabouts she used a London address for all formal and business correspondence while she was working abroad. The judge accepted that from 2000 to date the wife used the address of the Fulham property for most purposes.ii) The wife kept the personal possessions which she had retrieved from Ireland at the Fulham property. Contrary to the wife's case, the judge was not satisfied that there was any agreed firm, long term plan about the use of the property as a home, although it was one of a number of options.
iii) The floor plan of the Fulham property did not support the wife's case that when the Fulham property was renovated, the basement was designed to be a self-contained flat with a separate external entrance. The judge held that to do so would require extensive further work, although he accepted that the wife was concerned about the basement ceiling heights which was "indicative of an interest in living there herself".
iv) The wife paid income tax in England from 1997 to 2000 but, given the limited period concerned, the judge said this factor mattered little to his determination.
v) The wife paid national insurance contributions from 2002 reflecting "as she maintains and I accept - that it was to England that she saw herself returning to retire". The wife's pension for the EU delegation is to be paid according to the weighting referable to a base in England, not Ireland.
vi) The wife returned to London for antenatal and postnatal checks for their first child, and postnatal treatment for their second. The first child was born here. Both children received their vaccinations in London and both parties are registered with general practitioners in London. The judge held that the wife's "instinct and habit was to return to London for any significant medical treatment".
vii) In relation to the wife's enduring connections with Ireland the judge noted that the wife has Irish heritage but did not regard it as having the same importance to her at the time of trial as it once had. The judge noted that her relationships with her own family were strained and they did not attend her wedding. The wife has no state pension or equivalent rights in Ireland and only a dormant bank account. The judge noted that the wife "perceives Ireland as not offering a multicultural life" and she described Ireland as "too monocultural, too small and too remote".
viii) The wife had chosen not to spend time in England when she could, preferring to be in Europe or further afield. She has never taken any of her holidays in England and the judge accepted that when she was living in England in 2001, she was applying for jobs abroad, not in the UK.
ix) The judge summarised the wife's case at [49] as follows:
"The petitioner maintains that since 2001 (at the latest) she has considered herself to be domiciled in England, in spite of her various postings abroad for work. She asserts that London was always the city to which she would return; that she would not return to Dublin or elsewhere in Ireland. She asserts that it is her plan to retire in England."
"I have guarded against the temptation to take one isolated fact and extrapolate too much from it. I have had to stand back and review the scene as a whole; each fact as contour to the landscape."
"[61] I am of course influenced by the fact that the petitioner has lived in England only very temporarily, and now some time ago. She was a student in 1995-1997 and then in a house (with the respondent) in multiple occupancy for about 1 year in 2001-2002, more than 15 years ago. She was not, on either occasion "passing through" the country, and – certainly in the latter period - qualified for consideration as an "inhabitant". An extended length of residence in a country is not a strict requirement to the establishing of domicile; the petitioner has, in my judgment, lived here sufficiently to qualify for establishing a domicile in this jurisdiction.
…
[63] I am satisfied that the petitioner has maintained strong practical, financial and fiscal links with the UK throughout her multiple postings. London has been the city to which she has returned for important medical treatment. I find that she viewed London as her "base", her adopted home, in place of Ireland, and she developed from 1995 onwards (more strongly from 2000) a "singular and distinctive" relationship with London which replaced that which she had had with her original home in Ireland. What I found surprising and distracting about the petitioner's case was that the petitioner spoke with relatively little emotional warmth about, or attachment towards, England as a country. Even when discussing her thesis, the evidence was given without much discernible enthusiasm or passion for her quintessentially English subject; she told me little of what she actually liked about London or England. It was notable (as the respondent observed) that she has not ever chosen to holiday here. This factor caused me to hesitate long before reaching my ultimate conclusion, but in the end it was not sufficient to counterbalance the other factors, which demonstrated that London had, in my finding, become her "centre of gravity", and the place of her permanent home.
[64] I find that from 2000 at the latest (though it was a developing picture from 1995), the Petitioner had acquired a domicile of choice in England and Wales, which has not been lost notwithstanding her various postings abroad."
The Law
i) The domicile of origin remains of great importance and is said to be "more tenacious" than other forms of domicile. As Dicey put it at [6-031] "it is more difficult to prove that a person has abandoned his domicile of origin than to prove that he has abandoned a domicile of choice".ii) There is a presumption that a person continues to be domiciled in the country in which he is domiciled. The burden of proof is on the wife to demonstrate that she has lost her domicile of origin, the standard of proof being the ordinary civil standard. Cogent and clear evidence is needed to show that the balance of probabilities has been tipped regardless of whether the issue is the acquisition, or loss, of a domicile of choice.
iii) The statements of people claiming or disputing a change of domicile must be treated with caution unless corroborated by action consistent with the declaration. The court will view evidence of an interested party with suspicion.
iv) A person can acquire a domicile of choice by a combination of residence and the intention of the person of permanent or indefinite residence but not otherwise.
v) Residence for a short period of time, even a few days, may be sufficient to establish a domicile of choice. The length of residence is not important in itself. (It is accepted by Mr Scott that, all other things being equal, either of the wife's two short periods of residence in England could be capable of establishing a domicile of choice.)
vi) Whilst the residence does not have to be long it has to be with the intention of permanent or indefinite residence.
vii) Residence without intention or intention without residence will not do to establish a domicile of choice.
"[9] vi) An intention to reside permanently, or for an unlimited time, in the given country must exist (6-039), the animus manendi; naturalisation is an indicator of intent (6-041). In Udny v Udny (1869) LR 1 Sc & D 441, it was said (Lord Westbury) that:
"Domicil of choice is a conclusion or inference which the law derives from the fact of a man fixing voluntarily his sole or chief residence in a particular place, with an intention of continuing to reside there for an unlimited time. This is a description of the circumstances which create or constitute a domicil, and not a definition of the term. There must be a residence freely chosen, and not prescribed or dictated by any external necessity, such as the duties of office, the demands of creditors, or the relief from illness; and it must be residence fixed not for a limited period or particular purpose, but general and indefinite in its future contemplation. It is true that the residence originally temporary, or intended for a limited period, may afterwards become general and unlimited, and in such a case so soon as the change of purpose, or animus manendi, can be inferred the fact of domicil is established." (emphasis by underlining added)
In Barlow Clowes International Limited v Henwood [2008] EWCA Civ 577 at [14], Arden LJ observed:
"Given that a person can only have one domicile at any one time for the same purpose, he must in my judgment have a singular and distinctive relationship with the country of supposed domicile of choice. That means it must be his ultimate home or, as it has been put, the place where he would wish to spend his last days". (emphasis by underlining added)"
"[5] In Re Fuld's Estate (No.3) Hartley v Fuld [1968] P 675; [1965] 3 All ER 776 Scarman J explained that the legal relationship between a person and the legal system of the territory which invokes his personal law is based on a combination of residence and intention. Everybody has a domicile of origin, which may be supplanted by a domicile of choice. He noted two particularly important features of domicile (1968 P 675 at 682) which are relevant to this case:
"First, that the domicile of origin prevails in the absence of a domicile of choice, i.e., if a domicile of choice has never been acquired or, if once acquired, has been abandoned. Secondly, that a domicile of choice is acquired when a man fixes voluntarily his sole or chief residence in a particular place with an intention of continuing to reside there for an unlimited time."…
…
[6] " … (3) It follows that, though a man has left the territory of his domicile of origin with the intention of never returning, though he be resident in a new territory, yet if his mind be not made up or evidence be lacking or unsatisfactory as to what is his state of mind, his domicile of origin adheres…."
"[10] The appellants' main point on the appeal is not, however, a contest on findings of primary fact by the lower court, but on the inference that Andreas's intention after about 1995 was to live in England permanently or indefinitely. The deputy judge expressly found that Andreas did not have that intention before 1995, even though by 1995 he had resided in London for 34 years and had established a substantial hotel business here.
…
[14] The appellants contended that the inference that Andreas's intentions changed after 1995 was wrongly made without due regard to the burden of proof and to the high standard of proof to be satisfied…."
"[53]… All the cases state that a domicile of origin can only be replaced by clear cogent and compelling evidence that the relevant person intended to settle permanently and indefinitely in the alleged domicile of choice."
"[6]…Thus there is in general a greater latitude where the findings in issue on an appeal are not primary facts but inferences from the proved facts. Applying that to this case it is unlikely that this court could go behind the judge's finding that Mr Henwood was determined to resist paying the debt due to the appellants… The inference as to whether Mr Henwood intended to stay permanently or indefinitely in Mauritius is based solely on the primary facts proved and for this purpose the judge is unlikely to have an advantage over this court. If an appellate court considers that the judge has come to a conclusion that is plainly wrong and outside the ambit within which reasonable disagreement is possible, it is bound to intervene, even though the question is one of fact. This standard does not apply if the judge has misdirected himself in law as to the correct approach to the evidence. If he has made an error of law in this way, there is no further requirement that the judge's finding should be plainly wrong or outside the ambit within which reasonable disagreement is possible. "
"[10]. The intention of residence must be fixed and must be for the indefinite future. It is not enough for instance that at any given point in time its length has not been determined."
"Given that a person can only have one domicile at any one time for the same purpose, he must in my judgment have a singular and distinctive relationship with the country of supposed domicile of choice. That means it must be his ultimate home or, as it has been put, the place where he would wish to spend his last days. Thus, in Bell v Kennedy… Lord Cairns, having held that it was unnecessary for him to examine the various definitions that have been given of the term "domicile", held that the question to be considered was in substance whether the appellant:
"had determined to make, and had made, Scotland his home, with the intention of establishing himself and his family there, and ending his days in that country?
[15] In my judgment this test by its reference to ending one's days usefully emphasises the need for the subject to have a fixed purpose that he will live in the country of his domicile of choice."
"[16]…"Positioned at the date of death in February 2003 the court must look back at the whole of the deceased's life, at what he had done with his life, at what life had done to him and at what were his inferred intentions in order to decide whether he had acquired a domicile of choice in England by the date of his death. Soren Kierkegaard's aphorism that "Life must be lived forwards, but can only be understood backwards" resonates in the biographical data of domicile disputes.""
Discussion & Conclusion
"A new domicile is not acquired until there is not only a fixed intention of establishing a permanent residence in some other country, but also the intention has been carried out by actual residence there. Residence without intention is insufficient: this is shown by the many cases in which residence was clearly established and in which the decision turned solely on the question whether the propositus had the necessary intention. Conversely a domicile cannot be acquired by an intention without residence. It follows from this that a domicile of choice cannot be acquired merely by setting out for a new country: actual arrival there is necessary."
"[63] …I find that she viewed London as her 'base', her adopted home, in place of Ireland, and she developed from 1995 onwards (more strongly from 2000) a "singular and distinctive" relationship with London which replaced that which she had had with her original home in Ireland.
[64] I find that from 2000 at the latest (though it was a developing picture from 1995), the Petitioner had acquired a domicile of choice in England and Wales, which has not been lost notwithstanding her various postings abroad.
The Respondent's Notice
"[61] She was a student in 1995 – 1997 and then in a house (with the Respondent) in multiple occupancy for about 1 year in 2001-2002, more than 15 years ago. She was not, on either occasion passing through and – certainly in the latter period - qualified for consideration as an "inhabitant" … [She] has, in my judgment, lived here sufficiently to qualify for establishing a domicile in this jurisdiction."
"[10] The intention of residence must be fixed and must be for the indefinite future. It is not enough for instance that at any given point in time its length has not been determined."
"[14] Given that a person can only have one domicile at any one time for the same purpose, he must in my judgment have a singular and distinctive relationship with the country of supposed domicile of choice. That means it must be his ultimate home or, as it has been put, the place where he would wish to spend his last days. Thus, in Bell v Kennedy (1868) LR 1 Sc and Div 307, 311, Lord Cairns, having held that it was unnecessary for him to examine the various definitions that have been given of the term "domicile", held that the question to be considered was in substance whether the appellant:
"had determined to make, and had made, Scotland his home, with the intention of establishing himself and his family there, and ending his days in that country?" (emphasis added)
[15] In my judgment this test by its reference to ending one's days usefully emphasises the need for the subject to have a fixed purpose that he will live in the country of his domicile of choice."
"… clear cogent and compelling evidence that the relevant person intended to settle permanently and indefinitely in the alleged domicile of choice."
Lord Justice Newey:
Mr Justice MacDonald: