Campbell v van der Velde as trustee of the bankrupt estate of Marilyn Anne Rowan, in the matter of Rowan

In this case, the applicants, Neil Campbell and Christopher Rowan, sought to establish a constructive trust over a property held by Marilyn Anne Rowan (the bankrupt), who held a 98/100 share in the property. The dispute arose after the bankrupt's estate was sequestered, and the applicants sought to claim their equitable interests in the property. The court was required to determine whether the applicants' contributions to the purchase, development, and financing of the property entitled them to a share in the property and whether a constructive trust should be imposed.

The court examined the evidence of the contributions made by the parties and concluded that the applicants' overall contributions significantly outweighed those of the bankrupt. The court found that the applicants had entered into a joint venture agreement with the bankrupt to purchase, develop, and profit from the sale of the property. The court considered the principles set out in Muschinski v Dodds and Baumgartner v Baumgartner and held that a constructive trust should be imposed in proportion to the parties' contributions.

The court also addressed the issue of the equitable interest vesting in the trustee under section 58(1) of the Bankruptcy Act 1966. The court found that no illegality had been established that would disentitle the applicants to the relief sought.

In conclusion, the court directed the parties to bring in agreed orders to give effect to its reasons. The court was minded to declare that the purchase and development of the property was pursuant to a joint venture agreement between the applicants and the bankrupt. The court also found that the bankrupt held her 98/100 share of the property on constructive trust for the applicants in proportion to their contributions. The court ordered the applicants to pay the trustee a specified sum in full and final satisfaction of the bankrupt's interest in the property. The court also ordered that the trustee provide the applicants with the necessary documents to effect the transfer of the bankrupt's interest in the property to the applicants.