Court Of Appeal Revisits The Law On Donatio Mortis Causa

On 9 June 2015, the Court of Appeal overturned the High Court judgment in the case of King v Dubrey & Others [2014] (for the case report of the first instance decision, prepared by Charles Russell Speechlys, please click here). This case involved a donatio mortis causa ("DMC"), which is a gift made during the lifetime of the donor in the contemplation of his or her impending death.

Background

This case involved the estate of Ms June Fairbrother ("the Deceased"). It was widely known by the Deceased's family and friends that she loved animals and planned to leave her property in Hertforshire, worth approximately £350,000, to a number of animal charities. The Deceased's will dated 20 March 1998 was drafted in those terms, providing for legacies of £19,000 to friends and family and leaving her residuary estate to a selection of animal charities.

Mr King, the Deceased's nephew brought a claim before the High Court, claiming that the Deceased had made a DMC of her property to him between 4 and 6 months before her death by handing him 'the deeds' to the property at a time when she knew her health was failing, saying "this will be yours when I go". There were no witnesses to this conversation and therefore the only evidence in support of this was the testimony of Mr King himself.

The High Court held that there had been a DMC by the Deceased to Mr King. The court considered that the words used by the Deceased were sufficient to suggest a conditional gift on her death; the significant passage of time and absence of serious illness did not prevent the Deceased's contemplation of her death; and that the Deceased handing the deeds for the property to Mr King was sufficient for her to part with possession, despite the deeds remaining at the property owned by her thereafter.

In deciding in favour of Mr King, this in effect removed the most valuable asset from the Deceased's residuary estate which was gifted to the animal welfare charities nominated as residuary beneficiaries in her 1998 Will.

Decision Appealed by Charity Beneficiaries

Redwings Horse Sanctuary and Chilterns Dog Rescue Society, two of the seven animal charities set to benefit under the Deceased's 1998 Will, elected to appeal the decision of the High Court. The appeal gave the Court of Appeal the opportunity to re-examine the previous authorities in this area and to clarify the scope of the doctrine of DMCs in modern law. The principal issue before the court was whether the Deceased's...