header-logo header-logo

15 May 2015 / Steve Evans
Issue: 7652 / Categories: Features , Property
printer mail-detail

Dirty hands reach further

nlj_may_15_evans

The law surrounding illegal conduct & trusts is in a muddle, says Steve Evans

The maxim of equity “he who comes to equity must come with clean hands” used to be as inviolable as it was pithy. For nearly two centuries, courts of equity denied equitable relief to a claimant whose conduct was tainted by illegality. Rationally enough, this was to deter persons from entering into illicit transactions.

Tinsley v Milligan

However in 1994, the House of Lords in Tinsley v Milligan [1994] 1 AC 340, [1993] 3 All ER 65, sidestepped this maxim. That case concerned a resulting trust. Two lesbian partners both contributed to the purchase of a house, but the name of one of them was deliberately kept off the title so that she could pretend she did not have that asset and she illegally claimed benefits. Nevertheless, when the house was sold following the breakdown of the relationship, she still wanted her share of the sale proceeds because of her contributions to the purchase price of the house—and she got it. The House of Lords concluded, by a bare

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Pro bono is celebrating a silver anniversary, with initiatives putting businesses and students at the heart of access to justice
Choosing the wrong expert can cost a clinical negligence claimant more than their case
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
back-to-top-scroll