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Chattey v Farndale Holdings

[1998] 75 P & CR 298

Case summary last updated at 09/01/2020 15:49 by the Oxbridge Notes in-house law team.

Judgement for the case Chattey v Farndale Holdings

The plaintiffs had paid deposits for apartments which were to be built. After the developer became insolvent the plaintiffs sought recovery of the deposits, saying they had a lien which preceded the claims of chargees. Held: The one appeal failed and another succeeded. "the circumstances in which a purchaser's lien will arise are not limited to those in which the contract is or has been specifically enforceable but include those in which there is or has been a right to call for the legal estate whether presently, in the future or conditionally so as to give rise to the equitable interest or estate. . . " 
Morritt LJ: There is no constructive trust: following Fox LJ’s dictum (above) mere notice of prior contracts or interests is not sufficient to establish one. There has to be an objective intention to take subject to the TP’s rights. 

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