What is the legal test for the use of the “clean hands” defence in property transactions?
British Columbia, Canada
The following excerpt is from Williamson v. Saywell et al., 2006 BCSC 1307 (CanLII):
The use of the defence is qualified by the equitable “clean hands” doctrine. In Tinsley v. Milligan, [1993] 3 All E.R. 65, the court explained the doctrine at ¶9 as follows: [I]f A puts property in the name of B intending to conceal his (A’s) interest in the property for a fraudulent or illegal purpose, neither law nor equity will allow A to recover the property, and equity will not assist him in asserting an equitable interest in it. This principle applies whether the transaction takes the form of a transfer of property by A to B, or the purchase by A of property in the name of B.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Does the defence have to be limited in its defence in the defence or preparation for trial? (British Columbia, Canada)
What is the legal test for retaining a deposit in a real property transaction? (British Columbia, Canada)
Does the words 'shall be the joint property of the undersigned' or 'right of survivorship' convey a legal title to a joint property? (British Columbia, Canada)
When one spouse excludes property that is real property, is that a spouse entitled to an undivided half interest in the increased value of the property? (British Columbia, Canada)
What is the test for establishing that a party registered on the title of a property has a legal and equitable interest in the property? (British Columbia, Canada)
What is the defence of a defence where the defence cannot raise a reasonable doubt by mere speculation? (British Columbia, Canada)
Can a person whose equitable interest in a property is being challenged give value for their legal interest in the property? (British Columbia, Canada)
Does the clean hands doctrine apply to a claim for unjust enrichment that involves the construction of a barn on a Defendant's property? (British Columbia, Canada)
What is the legal background to s. 71 of the Legal Profession Act? (British Columbia, Canada)
At what point in the history of real estate transactions, in what circumstances will real property have value? (British Columbia, Canada)
