Case Summary

Johnson v Buttress (1936) 56 CLR 113

Donation of property; vitiating circumstances; undue influence; proof of general undue influence.

Facts: Buttress was an elderly man, excitable, emotional, unable to read or write, and very dependent on the help of others. After his wife's death, Buttress began to rely on Johnson. She cooked his meals and gave him advice about renting his house. When he said he wanted to make a will in her favour, Johnson took him to her own solicitor for this purpose. Later, after Buttress moved in to live with the Johnson family, she again took him to her solicitor and he transferred ownership of his house to her as a gift. After Buttress died, his son asked the court to set aside as void the transfer of the house to Johnson.

Issue: Could the gift of the house be set aside on grounds of undue influence?

Decision: In the circumstances, the gift was voidable on grounds of undue influence.

Reason: Buttress was an ignorant man who had come to confide in and depend on a person he regarded as having the advantages of education and position. The degree to which he trusted Johnson was shown by the fact that he was prepared to make over his sole property to her. His affairs were managed by her or under her supervision. In these circumstances a relationship of confidence and trust existed sufficient to establish a presumption of a general controlling influence. To avoid having the contract set aside as void, Johnson had to prove that the transfer of the house was an exercise of Buttress's free will, and she was not able to do so. The visit to the lawyer did not constitute independent legal advice to Buttress because it was Johnson's lawyer that they had visited.