Kernott v Jones
Encyclopedia
Jones v Kernott [2011] UKSC 53 is a decision by the UK Supreme Court concerning the beneficial entitlement to a family home under a constructive trust
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in Essex
, for £30,000. Ms Jones contributed £6,000, and the balance was raised by an interest-only mortgage. The house was conveyed into their joint names. From this point on they shared payment of the household bills and the mortgage. In 1986 the couple's second child was born. The parties took out a loan for £2,000 for an extension which was mostly constructed by Mr Kernott.
In 1993 the couple separated, and Mr Kernott left Badger Hall Avenue. He stopped paying his share of the bills, and contributed little or nothing towards the maintenance of the children. In May 1996 the parties cashed in a life insurance policy and divided the proceeds. With his share of these Mr Kernott bought 114 Stanley Road, Benfleet
in Essex, for £57,000.
In May 2006 Mr Kernott sought payment of his half-share of Badger Hall Avenue. Ms Jones responded by claiming under the Trusts of Land and Appointment of Trustees Act 1996
(TOLATA) for a declaration that she owned the entire beneficial interest in the property. Judge Dedman, after considering Oxley v Hiscock [2005] Fam 211 and Stack v Dowden [2007] 2 AC 432, held that while the interests of the parties at the outset might well have been that the property should be split jointly, those intentions had altered significantly over the years. He considered that the correct test was therefore what was "fair and just" between the parties, taking into account the whole course of dealing between them. He concluded, taking into account Mr Kernott's ceasing to pay any bills, the fact that Ms Jones contributed over 80% of the equity, and the lack of assistance provided by Mr Kernott relating to the maintenance of the children, that the correct split would be 90:10 in favour of Ms Jones.
Lord Justice Kerr disagreed with the judgment of the Court of Appeal, and held that a 90:10 split in favour of Ms.Jones was "a fair one between the parties".
Constructive trust
A constructive trust is an equitable remedy resembling a trust imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding legal right to property which they should not possess due to unjust enrichment or interference...
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Facts
Ms Jones and Mr Kernott met in 1980. In 1981 Ms Jones bought a caravan with the help of a bank loan, and in 1984 Mr Kernott moved into the caravan with her upon the birth of their first child. In May 1985 Ms Jones sold her caravan, and the parties bought 39 Badger Hall Avenue, ThundersleyThundersley
Thundersley is a district in the north west of the Castle Point Borough, in south east Essex, England, about 35 miles east of London.-Toponymy:...
in Essex
Essex
Essex is a ceremonial and non-metropolitan county in the East region of England, and one of the home counties. It is located to the northeast of Greater London. It borders with Cambridgeshire and Suffolk to the north, Hertfordshire to the west, Kent to the South and London to the south west...
, for £30,000. Ms Jones contributed £6,000, and the balance was raised by an interest-only mortgage. The house was conveyed into their joint names. From this point on they shared payment of the household bills and the mortgage. In 1986 the couple's second child was born. The parties took out a loan for £2,000 for an extension which was mostly constructed by Mr Kernott.
In 1993 the couple separated, and Mr Kernott left Badger Hall Avenue. He stopped paying his share of the bills, and contributed little or nothing towards the maintenance of the children. In May 1996 the parties cashed in a life insurance policy and divided the proceeds. With his share of these Mr Kernott bought 114 Stanley Road, Benfleet
Benfleet
South Benfleet is a town in the Castle Point district of Essex, 30 miles east of London. The Benfleet post town includes South Benfleet, Thundersley and Hadleigh. The Battle of Benfleet took place here between the Vikings and Saxons in 894....
in Essex, for £57,000.
In May 2006 Mr Kernott sought payment of his half-share of Badger Hall Avenue. Ms Jones responded by claiming under the Trusts of Land and Appointment of Trustees Act 1996
Trusts of Land and Appointment of Trustees Act 1996
The Trusts of Land and Appointment of Trustees Act 1996 is an Act of Parliament of the United Kingdom, which altered the law in relation to trusts of land in England, Wales, Scotland and Northern Ireland.-Background:...
(TOLATA) for a declaration that she owned the entire beneficial interest in the property. Judge Dedman, after considering Oxley v Hiscock [2005] Fam 211 and Stack v Dowden [2007] 2 AC 432, held that while the interests of the parties at the outset might well have been that the property should be split jointly, those intentions had altered significantly over the years. He considered that the correct test was therefore what was "fair and just" between the parties, taking into account the whole course of dealing between them. He concluded, taking into account Mr Kernott's ceasing to pay any bills, the fact that Ms Jones contributed over 80% of the equity, and the lack of assistance provided by Mr Kernott relating to the maintenance of the children, that the correct split would be 90:10 in favour of Ms Jones.
Supreme Court
The Supreme Court, overturning the Court of Appeal, held that Mr Kernott and Ms Jones would hold the shares in the house on trust in a ratio of 10% to 90%, to reflect their contributions to the home.Lord Justice Kerr disagreed with the judgment of the Court of Appeal, and held that a 90:10 split in favour of Ms.Jones was "a fair one between the parties".
See also
- English land lawEnglish land lawEnglish land law concerns the law of real property in England and Wales. Because of its heavy historical and social significance, land is a major part of the wider English property law....
- Oxley v Hiscock [2004] EWCA Civ 546
- Stack v Dowden [2007] UKHL 17