Which case held that when establishing a Lloyds Bank v Rosset 'category two' trust, the non-legally owning party must establish a common intention to share the property by conduct?

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The Answer is The case that held that when establishing a Lloyds Bank v Rosset 'category two' trust, the non-legally owning party must establish a common intention to share the property by conduct is the case of Lloyds Bank plc v Rosset itself. The citation for this case is [1991] 1 AC 107, [1990] 2 WLR 867, [1990] 1 All ER 1111, and it was decided by the House of Lords.

In Lloyds Bank v Rosset, Lord Bridge laid out two categories for establishing a beneficial interest in a property under a constructive trust in situations where the property is in one party's name only:

1. Category one: There is direct evidence that both parties intended to share the ownership of the property. This could be through an explicit agreement, arrangement, or understanding.

2. Category two: Where there is no express agreement, the intention to share the property must be inferred from the conduct of the parties. This conduct must be indicative of a common intention to share the beneficial interest and must go beyond merely contributing to household expenses. It typically involves a significant contribution to the acquisition of the property, such as payment towards the purchase price or substantial improvement of the home.

In the Rosset case, the House of Lords held that the non-legal owner (Mrs. Rosset in this case) had to demonstrate that there was a common intention to share the beneficial interest in the property, and that this intention was deduced from her conduct. However, in this particular case, Mrs. Rosset was unable to establish such a common intention based solely on her conduct, which included supervising and participating in renovation works, as it was not deemed sufficient to demonstrate a shared intention to own the property.

The Lloyds Bank v Rosset case is a leading authority on the establishment of constructive trusts in the context of cohabiting couples and the division of property when relationships break down. It sets a high threshold for the non-legal owner to prove a common intention to share the beneficial interest in the property through conduct.

Which Case Held That When Establishing a Lloyds Bank V