Derek Heelan v Cupton Pty Limited

Derek Heelan, a former employee of Cupton Pty Limited, brought an action against the company seeking to establish his entitlement to an equitable interest in the property located at 71-73 Wentworth Avenue, Ashfield. Heelan claimed that he had been promised a share in the property by the company's director, and that he had made substantial contributions to the business, which entitle him to an equitable interest in the property. Cupton Pty Limited denied the claim, asserting that Heelan had no entitlement to any interest in the property. The dispute was heard in the Supreme Court of New South Wales.

The primary legal issues that the court had to determine were whether Heelan had an equitable interest in the property by way of a resulting trust, a constructive trust, or whether his interest could be established based on unconscionability. The court also had to decide whether Cupton Pty Limited, as a bona fide purchaser for value without notice, was protected by indefeasibility under the Real Property Act 1900. Finally, the court needed to consider whether there was evidence of a dishonest and fraudulent design by Cupton Pty Limited in relation to the property.

The court found that Heelan did not have an equitable interest in the property by way of a resulting trust or a constructive trust. The court held that Heelan's claim based on unconscionability also failed. The court found that Cupton Pty Limited had acted in good faith and was protected by indefeasibility under the Real Property Act 1900. The court rejected Heelan's argument that Cupton Pty Limited had acted with a dishonest and fraudulent design in relation to the property. The court held that there was no evidence to support this claim.

In conclusion, the court dismissed Heelan's claim in its entirety and awarded costs to Cupton Pty Limited. The court held that Heelan had no entitlement to any interest in the property located at 71-73 Wentworth Avenue, Ashfield.