Berthelsen v Williams

The case of Berthelsen v Williams involved a dispute over a debt of approximately $10,000. The applicant, Berthelsen, had borrowed money from the respondent, Williams, and had executed an IOU in 2012. The relationship between the two, which was described as a de facto relationship, ended in 2016. Berthelsen subsequently sought to recover the debt from Williams. The matter was determined by the Federal Circuit Court, which found in favour of Berthelsen on the basis that the IOU was valid and legally binding.

The central legal issues for the Full Court to determine were whether the IOU evidenced an intention to create legal relations and whether the claim was barred by the timeframes outlined in the Family Law Act 1975. The Court had to consider whether the agreement was a domestic arrangement to which the Act applied, or whether it was a commercial transaction. The Court was also required to assess whether the claim was within the statutory limitation periods outlined in the Family Law Act.

The Full Court found that the agreement between the parties was a commercial arrangement, rather than a domestic one, and that there was an intention to create legal relations. However, the Court held that the claim was barred by the limitation periods under the Family Law Act. The Court found that the six-year limitation period for actions under the Family Law Act had expired, and the applicant had not established any grounds for extending this period. The Court further held that there were no grounds for leave to appeal to the High Court. The Full Court refused the application for leave to appeal, upholding the decision of the trial judge.