Property negligence

Negligence

Negligence imposes liability for loss or injury caused by carelessness. Two central questions arise, which are:

  1. what constitutes carelessness?

  2. when is liability not imposed even though the defendant was careless?

The courts use the concept of 'duty of care' to answer both questions. The concept has three parts:

  1. foreseeability—are the defendant’s acts potentially harmful to those whom a reasonable person would have foreseen as likely to be adversely affected by such action?

  2. proximity—is the relationship between the parties significantly close?

  3. fairness—is it 'fair, just and reasonable' to impose liability on the defendant?

On establishing that a duty of care exists, it is then necessary to consider whether or not there has been a breach of that duty. The law adopts the artificial objective standard of the reasonable person, taking into account four factors:

  1. probability—a

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Latest Property Disputes News

Insolvency, declarations of trust, loan agreements, artificial asset protection, sham transactions, transactions defrauding creditors, interspousal asset transfers, change of position defence and wife’s entitlement to share of husband’s assets (Sayers v Dixon)

Restructuring & Insolvency analysis: The court held that six declarations of trust (DoTs) executed by the transferor (Mr Dixon) in favour of his wife (Mrs Dixon) constituted transactions defrauding his creditors within the meaning of section 423 of the Insolvency Act 1986 (IA 1986) and that two of them, purporting to transfer all his future assets and income to Mrs Dixon, along with an accompanying loan agreement, were shams which were void and ineffective. It set aside the DoTs and ordered Mrs Dixon to restore the value of three transferred properties (which had been converted into £551,589 cash) to Mr Dixon’s trustees in bankruptcy (trustees) together with interest of £101,726. It also ordered an account to be taken of the funds that had been transferred to Mrs Dixon or on her behalf by Mr Dixon over the seven years between the date of the DoTs and his bankruptcy. The court dismissed Mrs Dixon’s defence of change of position to the trustees’ claim for restoration, finding that even if such a defence were generally available (which is unclear), she had not acted in good faith and could not rely on it. It also dismissed her defence that, having been married to Mr Dixon for many years, she was entitled to half his assets and/or an entitlement to a share of them by virtue of a right to be maintained. Written by Jonathan Lopian, barrister at New Square Chambers, who acted for the successful claimants.

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