Source: All England Reporter
Publisher Citation: [2015] All ER (D) 197 (May)
Neutral Citation: [2015] EWHC 1457 (Ch)
Court: Chancery Division
Judge:

Mrs Justice Proudman

Representation Clare Stanley QC (instructed by OGR Stock Denton LLP) for M.
  Judith Bryant (instructed by OGR Stock Denton LLP) for the third defendant.
  Jonathan Davey (instructed by OGR Stock Denton LLP) for the fourth defendant.
  Matthew Slater (instructed by the Solicitor and General Counsel to HM Revenue and Customs) for the Revenue.
  The first and second defendants were not represented and did not appear.
Judgment Dates: 21 May 2015

Catchwords

Mistake - Rectification - Setting aside of settlement - Two properties being placed in trust for benefit of claimant - Claimant's father loaning her money to purchase property - Claimant making settlement by which she would pay loan back to her father - Solicitor failing to inform her of negative effects of doing so - Claimant discovering effects and seeking to have settlement set aside, on grounds of equitable mistake - Her Majesty's Revenue and Customs Commissioners resisting application - Whether, applying settled law, appropriate for settlement to be set aside.

The Case

Mistake Rectification. Two properties were placed in trust for the benefit of the claimant. Her father loaned her money to purchase one of the properties. The claimant made a settlement by which she would pay the loan back to her father. The solicitor failed to inform her of the negative effects of doing so. On learning of the negative effects, she sought to have the settlement set aside, on the grounds of equitable mistake. Her Majesty's Revenue and Customs Commissioners resisted the application. The Chancery Division held that, applying settled law, it was appropriate for the settlement to be set aside.

Practice Areas

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