Courtney v Powell

The case of Courtney v Powell involved a dispute regarding the validity of a transfer of property from a father to his daughter. The father, who was suffering from mild dementia, had transferred a property to his daughter under a deed of gift. The father’s adult sons, one of whom was homeless and estranged from the family for 36 years and the other dependent on a pension, contested the transaction. The court was required to determine whether the presumption of undue influence arose due to the relationship between the father and daughter and whether it was rebutted. Furthermore, the court had to consider if the father's medical condition constituted a 'special disability' that could lead to a finding of unconscionable conduct.

The court examined the relationship between the parties, noting the inherent trust and dependency in a parent-child relationship, particularly when the parent is suffering from mild dementia. The presumption of undue influence was considered in light of the father’s mild dementia and the daughter’s role as his primary caregiver. The court found that the presumption of undue influence was not rebutted as the father’s cognitive impairment significantly affected his capacity to make an independent decision. Additionally, the court found that the father’s medical condition did give rise to a'special disability', leading to the conclusion that the daughter had engaged in unconscionable conduct by taking advantage of this vulnerability.

The court concluded that the transaction was invalid due to the daughter's unconscionable conduct and undue influence. The sons were found to be adequately provided for under the Family Provision Act. The court ordered that the property be divided equally between the sons, recognising the father’s intention to provide for his children despite the effect of the transaction. The court determined that the notional estate order was necessary to rectify the situation and provide for the sons in accordance with the father's intentions.