Cambouya Pty Ltd v Buchanan

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.