“Equity enforces secret trusts to prevent fraud despite apparent contradiction of statutory formalities.”
Mr. Grogan left his entire estate to McCormick absolutely by will, but had made an oral agreement that McCormick would distribute the property according to Grogan's wishes for charitable purposes. When McCormick refused to carry out the secret arrangement, the intended beneficiaries sought to enforce the secret trust.
Whether equity would enforce an oral agreement regarding the distribution of property left by will when this agreement was not reflected in the formal will document, and whether such enforcement violated statutory formality requirements.
The House of Lords held that equity would enforce the secret trust to prevent fraud. McCormick held the property on trust for the intended beneficiaries despite the will appearing to give him absolute ownership.
This foundational case established the doctrine of secret trusts, which remains important in modern equity and succession law. It demonstrates equity's willingness to override strict legal formalities to prevent fraud and unjust enrichment.
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OSCOLA Citation
McCormick v Grogan (1869) LR 4 HL 82
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