[1977] 1 WLR 527 CA.

Facts:

Mr Constance separated from his wife. 2 years after the separation, Mr Constance and set up a home with his lover, Mrs. Paul and lived with her until his death. They shared their earnings and the household expenses. Mr. Constance received a sum of money as compensation for an industrial injury. He deposited the money into his bank account  ( under his sole name), but made it clear that both Mrs. Paul and himself are to use the money jointly. Mr Constance assured Mrs. Paul that `This money is as much yours as mine'.  When Mr. Constance died intestated , Mrs Paul claimed that he had created an express trust in her favour while Mr. Constance’s wife argued that the money belong to her husband’s estate which would automatically goes to her.

Held: (CA)

The Court of Appeal held that the word “this money is as much yours as mine” was sufficient to constitute a declaration of trust in favour of himself and Mrs. Paul. Although the word `trust' was never used, it was clear that Mr. Constance had intention to create such trust.