Calverley v Green

The High Court of Australia considered the dispute between the appellant, Calverley, and the respondent, Green, concerning the beneficial ownership of a property. The property was registered in the name of the appellant, but the respondent claimed a beneficial interest in it.

The central legal issue before the Court was whether a resulting trust arose in favour of the respondent, despite the property being registered solely in the appellant's name. This required the Court to examine the principles governing resulting trusts, particularly in circumstances where contributions to the purchase price were made by one party and the legal title was held by another. The Court also had to consider the effect of a loan from a third party on the determination of beneficial ownership.

The Court held that a resulting trust arises where a party contributes to the purchase price of property, and that contribution is not intended to be a gift or loan to the legal owner. In this instance, the respondent had made substantial contributions towards the purchase price of the property, and these contributions were not intended as a gift to the appellant. The fact that a portion of the purchase price was advanced by way of a loan from a third party did not alter the beneficial interest that arose from the respondent's direct contribution. The Court applied the established principles of resulting trusts, focusing on the intention of the parties at the time of the purchase.

The High Court found in favour of the respondent, declaring that she held a beneficial interest in the property proportionate to her contribution to the purchase price.