Chen v Liu

The case of Chen v Liu, heard by the Supreme Court of Queensland, involved a dispute between the parties regarding the ownership of a property purchased by the defendant, Liu, in the name of the plaintiff, Chen. The plaintiff alleged that the property was held on trust for him, as he had provided the purchase price for the property. The defendant denied the existence of any trust and claimed sole ownership of the property.

The primary legal issue before the court was whether a resulting trust existed over the property, with the plaintiff as the beneficial owner. The court was required to consider the circumstances surrounding the purchase and the intentions of the parties at the time of the transaction. The court also needed to determine whether the onus of proof lay with the plaintiff to establish the existence of the trust.

The court found that the circumstances of the case gave rise to a presumption of a resulting trust, as the plaintiff had provided the purchase price for the property. The court held that the onus of proof lay with the defendant to rebut this presumption. The defendant failed to provide any evidence to suggest that the property was intended to be held in any other manner than as a resulting trust for the plaintiff. As a result, the court found in favour of the plaintiff and declared that the property was held on trust for him. The defendant was ordered to transfer the property to the plaintiff and to pay his legal costs.