Legal Research
Cases
Cambouya Pty Ltd v Buchanan

Cambouya Pty Ltd v Buchanan

Case [2005] NSWSC 743 26 July 2005

No judgment structure available for this case.

Type to search within this case.

CITATION:
Cambouya P/L v Buchanan; Buchanan v Cambouya P/L [2005] NSWSC 743

HEARING DATE(S): 14, 15 & 16 December 2004

JUDGMENT DATE :

26 July 2005

JUDGMENT OF:
White J

DECISION:
1. In proceeding number 3977/04 I order that there be judgment for the defendant and that the plaintiff pay the defendant's costs; 2. in proceeding number 3892/04, I direct the plaintiff to bring in short minutes of order in accordance with these reasons.

CATCHWORDS:
TRUSTS AND TRUSTEES - Discretionary family trust under control of plaintiff's father - Farm property purchased by trustee - Plaintiff ran farming business on property - Expenses were paid by trustee, trustee accounted for business in its books and plaintiff received wages - Plaintiff claims that common intention with father was for plaintiff to own property beneficially - Constructive trust - Equitable charge - Whether common intention that plaintiff be beneficial owner established - Whether there was detrimental reliance by the plaintiff - Held plaintiff failed to establish common intention or detrimental reliance - Plaintiff's claim dismissed - Trustee entitled to possession.

CASES CITED:
Allen v Snyder [1977] 2 NSWLR 685
Pettitt v Pettitt [1970] AC 777
Gissing v Gissing [1971] AC 886
Green v Green (1989) 17 NSWLR 343
Brandling v Weir [2003] NSWSC 723
Carruthers v Manning [2001] NSWSC 1130
Parianos v Melluish (2003) 30 Fam LR 524
Grant v Edwards [1986] Ch 638
Austin v Keele (1987) 10 NSWLR 283
Giumelli v Giumelli (1999) 196 CLR 101

PARTIES:
Cambouya Pty Ltd v John James Buchanan
John James Buchanan v Cambouya Pty Ltd

FILE NUMBER(S):
SC 3892/04; 3977/04

COUNSEL:
Cambouya: M Walton SC, J Hmelnitsky
Buchanan: L Ellison, E Cox

SOLICITORS:
Cambouya: Clarke & Kann
Buchanan: Turnbull Hill Lawyers

LOWER COURT JURISDICTION:

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION

WHITE J

Tuesday, 26 July 2005

3892/04 Cambouya Pty Ltd v John James Buchanan
3977/04 John James Buchanan v Cambouya Pty Ltd

JUDGMENT

1 HIS HONOUR: These two proceedings were heard together. Cambouya Pty Ltd (“Cambouya”) is the registered proprietor of two farms known as Asaro Lodge and Goroka. Mr John Buchanan and his family occupy the farms. Cambouya seeks orders for possession of the farms. Mr Buchanan claims that he is the beneficial owner of the farms, of the business carried on on the farms and hence all the stock, plant and machinery, and of the funds held in an account in the name of Cambouya with Westpac Bank, Muswellbrook. In the alternative, he claims to be entitled to a charge upon Goroka and Asaro Lodge reflecting the increase in value of those properties from the date of their acquisition to disposal, consequent upon the financial and non-financial contributions made by him to their acquisition and upkeep.

2 Cambouya is the trustee of a discretionary trust known as the Buchanan trust. The trust was established by deed dated 7 February 1978. There were numerous primary beneficiaries of the trust being, it would seem, members of the Buchanan family. Sir…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Cambouya Pty Ltd v Buchanan

Details

AGLC: Cambouya Pty Ltd v Buchanan [2005] NSWSC 743
Case: [2005] NSWSC 743
Decision Date: 26 July 2005

CaseChat Overview and Summary

In the case of Cambouya Pty Ltd v Buchanan, the plaintiff, who had been operating a farming business on a property purchased by a discretionary family trust controlled by the plaintiff's father, sought to establish that a common intention existed with the father for the plaintiff to own the property beneficially. The plaintiff claimed either that a constructive trust should be imposed on the property or that an equitable charge should be recognised over the property in their favour. The primary legal issues before the court were whether a common intention existed for the plaintiff to be the beneficial owner of the property and whether the plaintiff had relied to their detriment on any such common intention.

The court examined the evidence and found that the plaintiff had not successfully demonstrated the existence of a common intention with the father that the plaintiff would own the property beneficially. The court considered the conduct of the parties, including the father's role as trustee and the manner in which he accounted for the business expenses and income in the trust's books. The court also assessed the plaintiff's reliance on any such common intention and concluded that the plaintiff had not provided sufficient evidence of detrimental reliance. The court determined that the plaintiff had failed to establish the necessary common intention or detrimental reliance.

As a result, the court dismissed the plaintiff's claim for a constructive trust or equitable charge over the property. The court found that the trustee, Cambouya Pty Ltd, was entitled to possession of the property. The court did not impose any additional orders beyond determining the entitlement to possession.

Orders