Eves v Eves [1975] 1 WLR 1338 (CA)

Facts

• Mr. Eves and Ms. Eves, an unmarried couple, began cohabiting in 1968.
• They had a daughter together and acquired a house, with the funds provided solely by Mr. Eves.
• The property was registered in Mr. Eves's sole name.
• Mr. Eves told Ms. Eves she was not on the title because she was under 21, implying she would have been included otherwise.
• During their relationship, Ms. Eves undertook substantial manual labour and renovations to the property.
• The couple had a second child.
• In 1972, Mr. Eves left the relationship and later married someone else.
• Ms. Eves sought a share of the property, relying on her contributions and the representation made by Mr. Eves regarding the title.

Issues

1. Whether a constructive trust arises where the non-legal owner is given a false excuse for not being included on the legal title.
2. Whether substantial non-financial contributions by a non-legal owner can found a beneficial interest in the property.
3. How objective versus subjective intention is determined in establishing a common intention trust.

Decision

• The Court of Appeal held that Ms. Eves had acquired a beneficial interest in the property.
• The court inferred a common intention to share ownership through Mr. Eves’s explanation and conduct.
• Ms. Eves’s substantial renovation work constituted detrimental reliance on the presumed common intention.
• It was deemed unconscionable for Mr. Eves to deny Ms. Eves a share in the property.
• The court imposed a constructive trust and quantified Ms. Eves’s interest at 25% of the property, based on her contributions.

Legal Principles

• A common intention to share beneficial ownership can be inferred from conduct or statements, even if not explicitly agreed.
• False excuses for not granting legal title can evidence an intention to share.
• Non-financial contributions, such as manual labour, can suffice as detrimental reliance for establishing a constructive trust.
• The test for intention is objective, focusing on outward conduct and representations rather than private intentions.
• The requirement of unconscionability underpins the imposition of a constructive trust, preventing one party from unfairly denying the interests of another.
• The decision contrasted with stricter approaches, like in Lloyds Bank plc v Rosset, which emphasized direct financial contributions.
• Later cases clarify the limits and application of these principles, e.g. Curran v Collins distinguished circumstances where there was no reasonable reliance or representation.

Conclusion

Eves v Eves is a landmark decision in English property law, confirming that constructive trusts and beneficial interests can arise from inferred common intention and significant non-financial contributions, especially where the legal owner gives false excuses excluding another from legal title. The case remains foundational in demonstrating how the courts apply equitable principles to prevent unconscionable denial of property rights in domestic contexts.