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Please forgive the shameless plug, but Banner Homes Group plc v. Luff Developments Ltd [2000] Ch. 372, CA is considered in the new (17th) edition of Lewin on Trusts, Sweet & Maxwell, Dec 2000, at para. 9-72A, and an attempt made to incorporate it into the general survey of constructive trusts contained in chapter 7, at para. 7-17.

So far as precursors are concerned, Pallant v. Morgan [1953] Ch. 43 and Holiday Inns Inc v. Broadhead (1974) 232 E.G. 951 were approved and applied by the Court of Appeal, along with other unreported first instance cases. The principle embodied would appear wider than that contained in Chattock v. Muller (1878) 8 Ch.D. 177, (which is probably best regarded on its facts as a specific performance case), and would seem rather to be based on the wider principles considered by Millett L.J. in Paragon Finance plc v. D.B. Thakerar & Co [1999] 1 All E.R. 400, at 408-9, (a judgment on which the structure of chapter 7 in Lewin is largely based). The Banner Homes principle is clearly related to proprietary estoppel, but it seems to me that it may not prove so wide as to be said to be based purely on advantage to the trustee, rather than detriment to the beneficiary. Do others agree?

Edwin Simpson

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Edwin Simpson
Christ Church
Oxford OX1 1DP

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