Ayshan v Abualadas

Two couples, the plaintiffs and the defendants, purchased property with the intention of developing a duplex. The property was held as tenants in common in equal one-third shares, with the plaintiffs' partner not included on the legal title. The parties agreed to a single mortgage over the property, which was to be paid off in proportion to a 50:50 contribution between the couples. After the duplex was constructed, the couples occupied the property. The property was later subdivided, but the ownership and mortgage proportions remained unchanged. The plaintiffs claimed beneficial ownership in half of the property on the basis of a constructive trust.

The legal issues before the court included determining the appropriate species of constructive trust, whether a failed joint endeavour constructive trust or a common intention constructive trust applied. The court had to consider whether the joint endeavour was ever completed and whether the common intention constructive trust, as pleaded, was sufficient to deal with the continuing mortgage and loan obligations.

The court held that the failed joint endeavour constructive trust applied rather than the common intention constructive trust. The court found that the joint endeavour was never completed, as the parties did not achieve the intended outcome of developing the duplex. Furthermore, the common intention constructive trust, as pleaded, was not sufficient to deal with the continuing mortgage and loan obligations. Consequently, the plaintiffs' claim for beneficial ownership in half of the property was dismissed.

The final orders of the court were that the plaintiffs' claim for a constructive trust over half of the property was dismissed, and the defendants were entitled to their costs of the proceeding.