Beneficial ownership dispute upheld on appeal

Katie Alsop acted for the successful claimant in a High Court appeal concerning the beneficial ownership of a portfolio of properties held in another person’s name.

The claimant argued that, although the legal title to the properties was held by the defendant, she was the true beneficial owner. Her claim was based on resulting and constructive trusts, relying on her financial contributions and the parties’ shared intentions regarding ownership of the portfolio.

At first instance, the County Court found in the claimant’s favour, holding that she was the beneficial owner of the properties.

The defendant appealed the decision, challenging both the trial judge’s factual findings and the refusal to reopen the judgment based on alleged new evidence.

The High Court dismissed the appeal on both grounds.

In doing so, the court reaffirmed the principle that appellate courts will be slow to interfere with factual findings made by a trial judge who has had the benefit of hearing and assessing witnesses first-hand. The court found that the original findings were supported by the evidence and were not plainly wrong.

The court also considered the circumstances in which a judgment may be reopened following a trial. It confirmed that the threshold for admitting new evidence after judgment is high and found that those requirements had not been met in this case.

The decision in Tohidi v Estridge [2022] provides valuable guidance for those involved in trust and property disputes. It highlights the evidential requirements for establishing beneficial ownership through resulting or constructive trusts and demonstrates the importance of both documentary and witness evidence in determining the true ownership of property.

The judgment also serves as an important reminder of the limited scope for appellate courts to interfere with fact-sensitive decisions and the difficulties parties may face when seeking to introduce new evidence after trial.

The case provides useful guidance for solicitors advising on property disputes, beneficial interests in land, equitable ownership, constructive and resulting trusts, co-ownership disputes and the reopening of judgments.