Goodman v Gallant [1986] Fam 106 (CA)

Facts

• The claimant (C) and her husband were original joint beneficial tenants of their family home.
• Afterward, C and the defendant (D) purchased the husband's share in the property jointly.
• The conveyance expressly declared that C and D held the property "upon trust to sell...until sale upon trust for themselves as joint tenants."
• C served notice to sever the joint tenancy with D, claiming a three-quarter interest in the property.
• C sought a court declaration asserting this greater share, arguing shares should reflect the parties’ intentions, not automatically be equal after severance.
• D argued that the sale proceeds should be divided equally as their express declaration established joint tenancy.
• The dispute centred on whether the division should follow the express declaration or consider C’s contribution and claimed intention.

Issues

1. Whether an express declaration of trust as joint tenants precludes subsequent claims to unequal shares based on implied (resulting or constructive) trusts.
2. Whether, upon severance of a joint tenancy, the beneficial shares default to equality absent an explicit alternative provision.
3. Under what circumstances could an express declaration of trust be set aside or rectified, permitting consideration of implied trusts.

Decision

• The Court of Appeal held that C and D were joint tenants per the express declaration and thus entitled to equal shares upon severance.
• The court found that an express declaration of trust setting out beneficial ownership excludes the application of resulting or constructive trusts, unless the express declaration is set aside or rectified.
• It was clarified that severance of a joint tenancy results, by default, in each joint tenant holding an equal share, unless otherwise specified by the trust instrument.

Legal Principles

• An express declaration of trust specifying beneficial interests is binding and takes precedence over claims based on resulting or constructive trusts, except where the declaration is set aside or rectified for reasons such as mistake, fraud, or misrepresentation.
• Severance of a joint tenancy results in equal shares for each joint tenant, based on the number of tenants at the time of severance, unless expressly agreed otherwise.
• Courts will not infer a different beneficial ownership from contributions or presumed intentions where there is an effective express declaration.

Conclusion

Goodman v Gallant [1986] Fam 106 (CA) confirms the primacy of express trusts in determining beneficial property interests, holding that expressed intentions in a trust instrument exclude implied trust claims and, on severance of a joint tenancy, each tenant obtains an equal share unless the express terms provide otherwise.