O'Kelly v Davies

Judgment

Lord Justice Pitchford:

The appeal

1. This is an appeal from the decision of His Honour Judge Vosper QC, sitting at Swansea County Court on 14 March 2013, when he made a declaration that the defendant (“the appellant”) holds the freehold property at 74 Lon Olchfa, Sketty, Swansea on trust for herself and the claimant (“the respondent”) in equal shares. The defendant now appeals on the grounds (1) that the judge was wrong to infer a common intention to share the beneficial interest in the property and (2) that in order to make good his claim to a beneficial interest in the property, whose legal title was at all times held by the defendant alone, the claimant was required by the judge’s findings of fact to assert an unlawful agreement; thus, public policy did not permit the respondent to enforce any equitable interest he may have had in the property. We have been assisted by the submissions of Mr Walters (counsel below) on behalf of the appellant. Mr Davies appeared in person. He did not seek to address the court save to make a plea for fairness. At the conclusion of argument, and retirement for consideration, the court informed the parties that the appeal would be dismissed for reasons to be given in writing. These are my reasons for dismissing the appeal.

2. The property is a mid-terrace house at Sketty Park in Swansea. Its acquisition by the appellant occurred in the following circumstances as found by the judge: The appellant and the respondent met in 1984 or 1985 when they were in their mid-twenties and lived together in a rented flat. The respondent was employed in the construction industry and spent much of his working life away from Swansea. In December 1987 they purchased in joint names 42 William Street, Sandfields, Swansea; it was their family home. On 1 May 1991 42 William Street was transferred by the parties into the sole name of the appellant. On 26 October 2006 the appellant sold 42 William Street to the respondent for the price of £155,000. Simultaneously, the appellant purchased 74 Lon Olchfa from a third party for the price of £130,000. The respondent let 42 William Street to tenants and the rent was used in part payment of the mortgage on that property; it was subsequently re-possessed. The parties lived together in rented accommodation until renovations to 74 Lon Olchfa were complete. They then lived together at 74 Lon Olchfa, when the respondent was not working abroad, until they separated at the end of 2011 following the