Key point
- Joint tenancy may be severed via a course of dealing evincing an intention to sever
Facts
- A house was bought by D and C’s father with each providing half of the purchase price
- D orally agreed to to sell her share in the house to C’s father but she subsequently refused to sell
- C’s father died leaving C as his administratrix
- C claimed that the joint tenancy had been severed in equity, D claim that house was hers by survivorship
Held (Court of Appeal)
- C’s claim failed, she was only entitled to a half share of the house
- The beneficial joint tenancy had been severed by D’s oral agreement to sell her share to C
Lord Denning MR
Severance by course of dealing
- Severance by course of dealing need not amount to an agreement, express or implied, since it is a separate method from mutual agreement
- It is sufficient if there a course of dealing in which one party makes clear to the other that he desires their shares to be held in common
- Similarly, is sufficient if both parties enter on a course of dealing that evinces an intention to sever
- Nielson-Jones was incorrectly decided, the couple had entered upon a course of dealing sufficient to sever their joint tenancy
Sir John Pennyquick
- An uncommunicated declaration by one party to the other, or indeed a mere verbal notice by one party to the other clearly cannot operate as a severance