Ashton v Pratt

Case [2015] NSWCA 12


Court of Appeal


Supreme Court


New South Wales

  • Summary available
Medium Neutral Citation: Ashton v Pratt [2015] NSWCA 12
Hearing dates:15 - 16 September 2014
Decision date: 16 February 2015
Before: Bathurst CJ at [1]; McColl JA at [222]; Meagher JA at [223]
Decision:

1. Appeal dismissed.
2. Appellant to pay the costs of the first respondent.
3. Grant liberty to the first respondent to apply for an order for costs against the second and third respondents within seven days.

Catchwords:

CONTRACTS – intention – family arrangements - whether intention to create legal relations in a domestic or social context – role of presumptions

CONTRACTS – intention to create legal relations – objective test – oral agreement – imprecise terms - language of obligation – nature of arrangement – where some obligations unenforceable

CONTRACTS – certainty – imprecise terms – language of obligation

CONTRACTS – accord and satisfaction – release – whether there was an offer and acceptance

CONTRACTS – unconscionability – unfair or oppressive conduct – whether evidence of undue pressure

EQUITY – estoppel - assumption or representation – degree of certainty required – nature of transaction - domestic or commercial

EQUITY - estoppel – promissory estoppel – whether must be defensive or negative in substance

EQUITY – estoppel – detriment – whether any detrimental reliance – nature of promises

EQUITY – trusts – intention to create a trust – whether fiduciary obligation breached

APPEAL – civil – rejection of evidence at trial – whether trial judge erred - deference to trial judge – advantage of seeing witness
Legislation Cited: Contracts Review Act 1980 (NSW)
Conveyancing Act 1919 (NSW)
Judicature Act 1873 (36 & 37 Vict c. 66)
Local Government Act 1919 (NSW)
Cases Cited: Ashton v Pratt (No 2) [2012] NSWSC 3
Associated Alloys Pty Limited v ACN 001 452 106 Pty Limited (In Liquidation) [2000] HCA 25; (2000) 202 CLR 588
Austotel Pty Ltd v Franklins SelfServe Pty Ltd (1989) 16 NSWLR 582
Australian Financial Services and Leasing Pty Ltd v Hills Industries Ltd [2014] HCA 14; (2014) 88 ALJR 552
Bahr v Nicolay (No 2) [1988] HCA 16; (1988) 164 CLR 604
Ballantyne v Phillott [1961] HCA 17; (1961) 105 CLR 379
Ballas v Theophilos (No 2) [1957] HCA 90; (1957) 98 CLR 193
Baloglow v Konstantinidis [2001] NSWCA 451; (2001) 11 BPR 20,721
Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130
Byrnes v Kendle [2011] HCA 26; (2011) 243 CLR 253
Cobbe v Yeoman’s Row Management Ltd [2008] 1 WLR 1752
Construction Technologies Australia Pty Ltd v Doueihi & 4 Ors [2014] NSWSC 1717
Darmanin v Cowan [2010] NSWSC 1118
Delaforce v Simpson-Cook [2010] NSWCA 84; (2010) 78 NSWLR 483
DHJPM Pty Ltd v Blackthorn Resources Ltd [2011] NSWCA 348; (2011) 83 NSWLR 728
Dillwyn v Llewelyn (1862) 4 De Gex, Fisher & Jones 517; 45 ER 1285
Donis v Donis [2007] VSCA 89; (2007) 19 VR 577
Ermogenous v Greek…

Continue reading Ashton v Pratt

Sign in free to access the full text

Details
AGLC
Ashton v Pratt [2015] NSWCA 12
Case
[2015] NSWCA 12
Decision Date

CaseChat Overview and Summary

The case of *Ashton v Pratt* involved a dispute between the appellant, Mr. Ashton, and the respondents, Ms. Pratt and her two children. The core of the disagreement concerned the existence and enforceability of alleged oral agreements made between Mr. Ashton and Ms. Pratt, relating to financial support and the establishment of a trust for their children. The matter was heard on appeal before Bathurst CJ, McColl and Meagher JJA of the Court of Appeal of New South Wales.

The legal issues before the Court of Appeal included whether the parties intended to create legal relations in respect of the alleged oral agreements, particularly given the domestic and social context of their relationship. The court also had to consider the certainty of the terms of these agreements, the application of the doctrine of accord and satisfaction, and whether any unconscionable conduct had occurred. Furthermore, the court examined principles of promissory and equitable estoppel, including the requirement for a clear assumption or representation, the nature of the detriment suffered, and whether estoppel could be used offensively. Finally, the court considered whether a trust had been created and if any fiduciary obligations had been breached.

The Court of Appeal, in dismissing the appeal, applied the objective test to determine the intention to create legal relations, considering the language used and the nature of the arrangement. The court found that while some aspects of the alleged agreements were too imprecise to be legally enforceable, other elements, particularly those concerning financial provision, could be construed as creating legal obligations. The court also addressed the equitable principles, finding that the evidence did not support a claim for unconscionability or a breach of fiduciary duty. The judges deferred to the trial judge's assessment of the evidence, noting the advantage of having observed the witnesses.

Consequently, the appeal was dismissed. Mr. Ashton was ordered to pay the costs of Ms. Pratt, with liberty granted to Ms. Pratt to apply for costs against the other respondents within seven days.

Orders

Orders of the court

1. Appeal dismissed.

2. Appellant to pay the costs of the first respondent.

3. Grant liberty to the first respondent to apply for an order for costs against the second and third respondents within seven days.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.