Behman v Behman

Case [2016] NSWCA 295


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Behman v Behman [2016] NSWCA 295
Hearing dates:28 September 2016
Date of orders: 03 November 2016
Decision date: 03 November 2016
Before: McColl JA at [1];
Meagher JA at [2];
Gleeson JA at [20]
Decision:

1. Appeal dismissed.
2. Appellant pay the respondent’s costs of the appeal.

Catchwords: EQUITY – unconscionable conduct and equitable proprietary estoppel – where father and son residing in family home – where respondent son made extensive financial contributions towards cost of holding and maintaining home – where contributions made on basis of shared understanding and intention that respondent had or was entitled to an ownership interest in the home – where appellant subsequently denied respondent had or was entitled to any such interest – whether primary judge erred in finding as to shared understanding and intention – whether primary erred in finding expectation in the respondent to same effect
Cases Cited: Baumgartner v Baumgartner (1987) 164 CLR 137 Giumelli v Giumelli (1999) 196 CLR 101
Green v Green (1987) 17 NSWLR 343
Sidhu v Van Dyke (2014) 251 CLR 505; [2014] HCA 19
Category:Principal judgment
Parties: Tarek Behman (also known as Terry Behman) (Appellant)
Daniel Behman (Respondent)
Representation:

Counsel:

 

P Walsh (Appellant)
J Darams with N Simpson (Respondent)

 

Solicitors:

  Elie Rahme & Associates (Appellant)
Eakin McCaffery Cox (Respondent)
File Number(s):2015/371893
Publication restriction:Nil
 Decision under appeal 
Court or tribunal:
Supreme Court of NSW
Jurisdiction:
Equity
Citation:
[2015] NSWSC 1787
Date of Decision:
23 October 2015
Before:
Rein J
File Number(s):
2014/75321

Judgment

  1. McCOLL JA: I agree with Meagher JA.

  2. MEAGHER JA: The appellant and respondent are father and son. In the somewhat unusual circumstances of this case the respondent was held to be entitled to a charge over the appellant’s property at Bexley North to secure the repayment of an amount of $120,000. That charge was imposed to satisfy an equity arising in circumstances where the respondent had made significant payments to his father to assist him in meeting his ongoing obligations under a mortgage of that property: Daniel Behman v Tarek Behman [2015] NSWSC 1787

  3. From 2002, when the respondent’s parents were divorced, the appellant and his four sons, each then at school, continued to live in the family home. The respondent and his twin brother remained there with their two younger brothers until June 2009, when Matthew (the respondent’s twin) moved out. The respondent stopped living in the property in January 2013. At that time he was almost 24 years old. From March 2007 when he commenced university, he had been working with an accounting firm, initially on a part time basis and then on a full time basis. Until December 2012 all of the income received from that employment was paid into a bank account operated and controlled by the appellant. The total of that income was $204,000 ([9], [25]). The primary judge (Rein J) held that the amount secured by the charge ($120,000) was…

Continue reading Behman v Behman

Sign in free to access the full text

Details
AGLC
Behman v Behman [2016] NSWCA 295
Case
[2016] NSWCA 295
Decision Date

CaseChat Overview and Summary

In *Behman v Behman*, the appellant father and respondent son were involved in a dispute concerning an ownership interest in the family home. The respondent son had made significant financial contributions towards the cost of holding and maintaining the home, asserting these contributions were made on the understanding and intention that he had or was entitled to an ownership interest. The appellant father subsequently denied the respondent's entitlement to any such interest, leading to the litigation. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issues before the court were whether the primary judge had erred in finding that there was a shared understanding and intention between the father and son regarding the son's ownership interest in the home, and whether the primary judge had erred in finding that the son held a corresponding expectation of such an interest. These issues engaged principles of unconscionable conduct and equitable proprietary estoppel.

The Court of Appeal upheld the primary judge's findings. The court reasoned that the son's substantial financial contributions towards the property, made over a considerable period, were demonstrative of a shared understanding and intention that he would acquire an ownership interest. The court found that it would be unconscionable for the father to deny the son's entitlement to an interest in the property, given the son's reliance on this understanding and his contributions. The principles of equitable proprietary estoppel were applied, focusing on the unconscionability of the appellant's conduct in reneging on the shared understanding after the respondent had acted to his detriment.

The appeal was dismissed, and the appellant was ordered to pay the respondent's costs of the appeal.

Orders

Orders of the court

1. Appeal dismissed.

2. Appellant pay the respondent’s costs of the appeal.

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.