Lessons in undue influence & beneficial interests. An update from the courts by Henrietta Mason, Harriet Gibson & Chris Williams
- The high threshold demanded when trying to demonstrate undue influence.
- Parties should consider explicit wording to either include or exclude their beneficial interests in a joint account.
In Whitlock v Moree [2017] UKPC 44, Francis Lennard and his friend David Moree opened a joint account at First Caribbean International Bank (Bahamas) Ltd (FCIB) in November 2009. The money ($190,000) was all contributed by Francis. Both men signed an account opening application in FCIB’s standard format which stipulated (clause 20), ‘JOINT TENANCY: Unless otherwise agreed in writing, all money which is now or may later be created to the Account (including all interest) is our joint property with the right of survivorship. That means if one of us dies, all money in the account will automatically become the property of the other account holder(s). In order to make this legally effective, we each assign such money to the other account holder...’.
David was an executor of and beneficiary under Francis’s will. On 18
