Re S (statutory will); D v R (the deputy of S) [2010] EWHC 2405 (COP)
S's financial deputy started an action in S's name seeking a declaration that gifts of money totalling over £500,000 made by S to D were procured by undue influence; S wanted the Chancery proceedings to be discontinued, so D sought a declaration that S had the capacity to do so. (1) Detailed consideration was given to the law (including that whether a decision is unwise or foolish is a relevant consideration in deciding on capacity, in particular where there is a marked contrast between the unwise nature of the decision and the former attitude when capacity was not in question) and to the conflicting medical evidence. (2) In order to have capacity: S must be able to understand, as a minimum, the nature and extent of the relationship of trust and confidence which he arguably reposed in Mrs D, the extent to which it may be said that his gifts to her cannot readily be accounted for by ordinary motives, and the general nature of the evidential burden resting on her to rebut any presumption of undue influence which might have arisen; also, since D's relationship with S is still subsisting, the court will need to scrutinise with particular care whether S is able to stand back from the impugned transactions with sufficient detachment truly to understand the nature of the claim. (3) On that basis, it was clear that S did not have capacity, as he could not (a) understand, (b) retain, or (c) use or weigh the relevant information. (4) The judge expressed the wish that, having regard to S's wishes and feelings, a settlement generous to D could be reached.
External link
Press Association, 'Father cannot halt court challenge over £500,000 gift', 4/10/10