Sen v Headley [1991] Ch 425

Facts

• The deceased (T) was diagnosed with terminal cancer in 1986 and, while in hospital, informed the claimant (C) that his house would belong to her.
• T indicated to C that the property deeds were located in a steel lockbox, and C possessed the keys to access it.
• Several days after these statements, T died.
• C claimed entitlement to the property as a valid donatio mortis causa (DMC) and brought a legal action against T’s estate.
• The initial judgment ruled that land could not be the object of a valid DMC; C appealed this decision.
• The appeal focused on whether land could be transferred via DMC despite statutory formalities for land transfers.

Issues

1. Whether real property (land) can be the subject of a valid donatio mortis causa.
2. Whether a constructive trust arising from a DMC is subject to the formality requirements under section 53(1) of the Law of Property Act 1925, or is excepted by section 53(2).

Decision

• The Court of Appeal allowed the appeal, holding that a valid DMC of land is possible in certain circumstances.
• The trust arising from a valid DMC was found to be a constructive trust imposed by operation of law, not by express disposition.
• Section 53(1) of the Law of Property Act 1925, which requires dispositions of land to be in writing, was deemed inapplicable due to the exception for constructive trusts under section 53(2).
• The court determined that if all conditions for a valid DMC were met, such a gift of land would be effective despite statutory formalities.

Legal Principles

• A donatio mortis causa requires: contemplation of death, conditional gifting upon death, and delivery (or delivery of essential means to obtain the subject property).
• A constructive trust can arise from a DMC and is exempt from s.53(1) requirements as per s.53(2) of the Law of Property Act 1925.
• Actual delivery is not necessary for land if delivery of the means of control (e.g. keys to deeds) is provided.
• The conditional and revocable nature of a DMC distinguishes it from both inter vivos (lifetime) gifts and testamentary dispositions.
• The intention and acts of the donor, manifesting transfer of dominion in contemplation of death, are central to a valid DMC.

Conclusion

Sen v Headley established that land may be transferred by a valid donatio mortis causa provided all requisite elements are satisfied, and that constructive trusts arising from such gifts are not subject to the statutory requirements of written disposition under section 53(1) of the Law of Property Act 1925, resolving longstanding ambiguity and confirming the equitable flexibility of the doctrine in specific cases.