Analysis
Patricia Deeley (Miss Deeley) lived with her unmarried partner, Peter Harding (Mr Harding) in his flat at 87 Beckenham Lane, Bromley (the property) from 1962 to 2008. When Mr Harding died on 11 August 2008, it was believed (incorrectly) that he had not left a will and, therefore, the intestacy rules regulated the succession to his estate. Letters of Administration were granted to one of Mr Harding’s cousins, Maurice John Littlewood (Mr Littlewood) on 2 March 2010. An action brought by Miss Deeley under the Inheritance (Provision for Family and Dependants) Act 1975 (the 1975 Act) was settled on the basis that she should have a life interest in the property and that the estate would make a payment towards repairs and replacements amounting to £25,000. The settlement was embodied in an order of District Judge Stewart in the Kingston upon Thames County Court on 17 June 2011. By a deed of trust dated 18 July 2011 Mr Littlewood transferred the property to solicitors to hold upon trust for Miss Deeley for life with remainder for the beneficiaries entitled on the intestacy of Mr Harding. Miss Deeley lived at the property until her death on 26 September 2014. During the course of clearing out the property it was discovered that Mr Harding had made a will on 3 November 1973 leaving, inter alia, an absolute interest in the property to Miss Deeley. Subsequently, the grant of Letters of Administration to Mr Littlewood was revoked and a grant of probate made in favour of the respondents, who were the executors of Miss Deeley’s will. On 16 March 2016 the respondents assented and assigned to the appellants, who were the beneficiaries under Miss Deeley’s will, her right of action in the proceedings under the 1975 Act. The appellants appealed (with leave) against the order made by District Judge Stewart in the Kingston upon Thames County Court.
Held (allowing the appeal):
The settlement agreement was entered into in ignorance on the part of all parties of the vital fact that Mr Harding had left the property to Miss Deeley in his will. The mistake was as fundamental as that referred to by Lord Atkin in Bell v Lever Bros where a party contracted to purchase land that he or she already owned. Therefore, the settlement agreement which the order had approved had been entered into on the basis of a common mistake and was declared void. It was also made on an incorrect basis because it was not the case that reasonable financial provision had not been made for Miss Deeley. Accordingly, the order should be set aside, apart from the provision for costs. As a consequence, the deed of trust dated 18 July 2011 should be set aside so that the proceeds of sale of the Property could be distributed in accordance with the terms of Miss Deeley’s will. No order for costs.
JUDGMENT ELIZABETH COOKE J: [1] This is an appeal against an order that District Judge Stewart made in the county court at Kingston upon Thames in 2011. [2] It arises like this: from 1962 to 2008, Patricia Deeley lived with Peter Harding as his partner, although they were not married, at 87 Beckenham Lane, Bromley, …Continue reading "British Red Cross v Werry [2017] EWHC 875 (Ch)"