The Gazette 1985

GAZETTE

JULY/AUGUST

198

Taylor Fashions Ltd -v- Liverpool Victoria Trustees Co. Ltd. [ 1981 ] 1 All E.R. 897 at 909 per Oliver J. Lord Cranworth's explanation of the principle relates to acquiescence; Lord Kingsdown's to encouragement. 14.(1866) LR 1 HL 129 at 170. 15. [1962]IR 268. 16.(1884) 9 App. Cas. 699. 17.(1862) 4 De G. F. and J. 517. 18. In Dillwyn -v- Llewellyn (1862) 4 De G. F. and J. 517 the plaintiff expended money in building a mansion on his father's land not under any mistake as to the ownership of the land, but upon the faith of a promise that he would be given the fee simple. He was held to be 22. The first case suggesting that the doctrine might apply outside the area of contractual relations appears tob e Denham Fancy Goods Ltd. -v- Michael Jackson (Fancy Goods) Ltd. [1968] 2 QB 839. 23. Combe -v- Combe [1951] 2 KB 215 at 224; Argy Trading -v- Lapid Developments Ltd. [1977] 1 WLR 444. 24. But see Amalgamated Investment and Property Co. Ltd. -v- Texas Commerce International Bank Ltd. [1981] 2 WLR 554 at 571-573. 25. [1962] IR 268 at 292. 26. Ibid. 27. The Irish law is, on this matter, substantially the same as English law. Possession by licence of the owner of land is not adverse: see Bellew -v- Bellew [1982] IR 447; Hyde -v- Pearce [1982] I All E.R. 1029; Hughes -v- Griffin [1969] 1 All E.R. 460. 28. [1981] ILRM 419. 32. [1981] ILRM 419 at 421. This aspect of Finlay P.'s judgment raises large issues concerning corporate personality. Servants of the County Council must have known that the land belonged to the McMahons for two reasons. It was the County Council which had sold the site to the McMahons in 1964, and Council employees had been warned off the site in 1968. Finlay P.'s opinion on this point therefore suggests that, at least in this context the actual knowledge of the servants of a corporation cannot be imputed to the corporation. 33. Ibid, at 421. 34. Ibid, at 423. An alternative remedy would have been to permit the McMahons to recover possession on terms that they compensate the County Council by re-imbursing the Council for the cost of the building works or for the value of the improvements, whichever is the less: see Bright -v- Boyd (1841) 4 F. Cas. 127; (1843) 4 F. Cas. 134 discussed in Palmer, The Law of Restitution (1978) pp. 435-440. 35. [1962] IR 268. 36. [1981] ILRM 419. 37.(1866) LR 1 HL 129. 38. He did so "Having regard to the fact that the plaintiffs were in this action asserting a clear and well established legal right and have been defeated in the enjoyment of that by what I conceive to be a novel application of a general equitable principle": [1981] ILRM 419 at 424. 39. [1962]IR 268. 40. [1976] Ch. 179. This case was reported nearly a full year before judgment was delivered in McMahon -v- Kerry County Council. It has now been referred to with approval by Finaly P. in Smith -v- Ireland [1983] ILRM 300. 41. [1981] ILRM 419 at 423. 42. Ibid. 43. See Mutual Life and Citizens Assurance Co. Ltd. -v- Evatt [1971] AC 793, [1971] 1 All E.R. 150 at 155. See also Electrolux Ltd. -v-EIectrix Ltd. (1954) 71 RPC 23 at 33 (Evershed MR). 44. [1981] 1 All ER 897. 45. Ibid, at 911-912. 46. Ibid, at 915-916. 47. [1981] 1 All E.R. 923 affirmed on other grounds [1981] 3 All E.R. 577. 48. [1981] ILRM 419. 49. Above, footnote 44. 50. Above, footnote 47. 51. See [1981] 1 All E.R. 897 at 912. 52. These are the third and fourth of the five probanda of Fry J. in Willmott -v- Barber (1880) 15 Ch. D. 96. 53. [1981] 1 All E.R. 897 at 912. Sec also Shaw -v- Applegaie[ 1978] 1 All E.R. 123 at 130-131. entitled to call for a conveyance of the freehold. 19. Especially Inwards -v- Baker [1965] 2 QB 29. 20. [1947] KB 130. 21. [1962] IR 268 at 292. 29. Ibid, at 419. 30. Ibid, at 420. 31.(1886) LR 1 HL 129 at 140-141.

Can I earn a high rate of interest (Hi my investment with standard rate income tax paid?

wiPkthe.

I

• • • Educational Building Society

183