Besser v Kermode

The case of Besser v Kermode was heard in the Supreme Court of Victoria. The dispute centred around the equitable interests in a property that the parents of the son and daughter-in-law had invested in. The parents, Mr and Mrs Besser, had sold their own home and placed the net proceeds with their son and daughter-in-law, Mr and Mrs Kermode, to use to build a house for all of them to live in. The parents were not fluent in reading English, and it was alleged that they were promised their names would be placed on the title as co-owners of the property. The case turned on whether the parents had made an equitable charge, lien, or constructive trust over the property, and if the breakdown in relations between the parties occurred "without attributable blame".

The central legal issues in the case were whether the parents had made a non-financial contribution to the purchase of the property, whether there was a promise that their names would be placed on the title as co-owners, and whether the breakdown in relations between the parties occurred "without attributable blame". The court had to determine whether the parents had made a significant enough contribution to warrant an equitable interest in the property, and whether the promise of their names being placed on the title was a valid agreement.

The court found that the parents had made a significant non-financial contribution to the purchase of the property, as they had sold their own home and placed the net proceeds with the son and daughter-in-law. The court also found that there was a promise that the parents' names would be placed on the title as co-owners of the property. However, the court found that the breakdown in relations between the parties did not occur "without attributable blame". The court held that the parents were entitled to an adjustment for their contributions, but did not find that they were entitled to an equitable charge, lien, or constructive trust over the property. The court ordered that the parents be paid $100,000 as compensation for their contributions.