Brown v Faggoter

In *Brown v Faggoter and Ors* [1998] NSWCA 44, the New South Wales Court of Appeal considered a dispute concerning the ownership and entitlement to a property. The appellant, Brown, sought to establish a beneficial interest in the property, which was registered in the names of the respondents, Faggoter and Ors. The core of the dispute revolved around whether the appellant had provided financial contributions towards the purchase of the property and whether these contributions, if proven, were intended to create a trust in his favour.

The primary legal issues before the Court of Appeal were whether the primary judge erred in finding that the appellant had failed to establish a resulting or constructive trust over the property. Specifically, the court had to determine if the appellant's alleged financial contributions were sufficient to give rise to an equitable interest, and if so, whether the circumstances surrounding those contributions indicated an intention to create a trust. The court also considered the application of principles relating to the presumption of advancement and the burden of proof in establishing equitable interests.

The Court of Appeal, in its reasoning, affirmed the principles governing the establishment of resulting and constructive trusts. It was held that for a resulting trust to arise, there must be evidence of a direct contribution to the purchase price of the property, and that such contribution was made with the intention of acquiring a beneficial interest. The court found that the appellant had not adduced sufficient evidence to satisfy this threshold, particularly in light of the presumption of advancement which typically operates in favour of a wife or child. Furthermore, the court examined the elements required for a constructive trust, which typically involve unconscionable conduct or a common intention to share beneficial ownership, and concluded that these elements were not made out on the facts presented. The primary judge's findings were upheld.