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Law Cases
Land Law Cases
Licences Cases

Chattey v Farndale Holdings [1998] 75 P & CR 298

Country:
United Kingdom
By Oxbridge Law Team
Held
Morritt LJ
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  • 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 (Ashburn Anstalt v Arnold) 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. 

Explore more about Chattey v Farndale Holdings
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