French v Barcham [2008] EWHC 1505

Written By Nicolas Heyes

Court: Chancery Division

Basic Facts:

  • Parties: X (Bankrupt), Y (Co-tenant), Trustee in Bankruptcy.

  • Context: X and Y co-owned a property as tenants in common. X's share vested in a trustee following bankruptcy. The trustee sought possession and sale of the property to recover X’s share, minus occupation rent for the period X was in occupation.

Issue for the Court: Is a trustee in bankruptcy entitled to compensation under TLATA 1996 s.13(6)?

Held: The court held that the equitable principles of fairness applied in the division of co-owned property after a relationship breakdown.

Blackburne J

  • Compensation: Section 12-15 of TLATA 1996 does not provide an exhaustive regime for compensation. A trustee must show entitlement to occupy the property. Compensation under s.13(6) applies only if the trustee is excluded from occupation and the beneficiary is entitled to occupy the property.

Nicolas Heyes
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