Cannon v Hartley [1949] Ch 213

Facts

  • The case arose from a voluntary settlement made by a settlor for the benefit of his daughter, the plaintiff.
  • The settlor executed a deed of settlement and covenanted to transfer certain property to trustees for his daughter.
  • The settlor failed to fulfill this obligation during his lifetime.
  • After the settlor’s death, the plaintiff sought to enforce the covenant against the settlor’s estate.
  • The settlement lacked consideration and was entirely voluntary.

Issues

  1. Whether a covenant made by a settlor in a voluntary settlement can be enforced against the settlor’s estate after death.
  2. Whether equitable remedies such as specific performance or injunctions are available against a deceased settlor’s estate when the settlement lacked consideration.
  3. Whether the absence of consideration prevents enforcement of equitable obligations arising from a voluntary settlement.

Decision

  • The court held that the plaintiff’s claim against the settlor’s estate could not succeed because the settlement was voluntary and lacked consideration.
  • It determined that equitable remedies such as specific performance are generally not available against a deceased settlor’s estate unless the obligation was specifically enforceable during the settlor’s lifetime.
  • The court clarified that equitable obligations arising from a voluntary settlement without consideration are not enforceable at law or in equity against a settlor’s estate.

Legal Principles

  • A voluntary settlement made without consideration is not enforceable at common law.
  • Equity will not typically enforce a covenant against a deceased settlor’s estate unless the obligation was enforceable in the settlor’s lifetime.
  • Specific performance as an equitable remedy requires a binding and enforceable obligation, which is absent where there is no consideration.
  • The principle affirms the importance of consideration in rendering voluntary settlements enforceable.
  • Equitable remedies are generally unavailable against a settlor’s estate for voluntary settlements unless enforceable rights were perfected before death.

Conclusion

Cannon v Hartley confirms that equitable remedies, particularly specific performance, cannot be obtained against a settlor’s estate in respect of a voluntary settlement lacking consideration. The decision highlights the necessity of consideration for enforceability in both equity and law, and restricts claims against an estate to those obligations that were legally enforceable during the settlor’s lifetime.

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