Brown v The NSW Trustee & Guardian

The case of Brown v The NSW Trustee & Guardian involved a dispute concerning the ownership of real property purchased from the proceeds of the sale of a cottage owned by the deceased father. The son, who had purchased the property, claimed that he held it on trust, either as an express or resulting trust, with the presumption of advancement rebutted. The court examined the evidence to determine the existence of any trust arrangement. The primary evidence presented was a solicitor's file note, which only partially described the circumstances of the transaction. Given the context and subsequent actions of the parties, the court found that the note did not sufficiently establish the terms of the trust, and the presumption of advancement was not applicable.

The legal issues before the court included whether an express trust was created, whether a resulting trust could be established, and whether there was any undue influence or unconscionable dealing in the transaction. The court found that there was no obligation on the son to act in his father's best interests, as the father had authorised and consented to the payment of proceeds to his son. The father's condition in hospital did not constitute a 'special disadvantage' sufficient to establish unconscionable dealing, and there was no evidence of undue influence.

The court also considered estoppel and confirmation, noting that the father had not challenged the transaction for five years before his death. The principle that equity aids the vigilant, not the tardy, applied, and the father had made a deliberate decision not to pursue the claim. The court concluded that it was not fair or right for the claim to be maintained after such a long period of inaction.

The court ultimately held that the property vested absolutely in the son, and there was no trust established. The son's actions in dealing with the proceeds were authorised by the father, and any claim to the contrary was barred by estoppel and confirmation.