Grange & Grange and Ors

Case [2019] FamCAFC 205


FAMILY COURT OF AUSTRALIA

GRANGE & GRANGE AND ORS [2019] FamCAFC 205

FAMILY LAW – APPEAL – PROPERTY – Whether the circumstances justify a finding that the third respondent held on trust the proceeds of sale of the only item of property held by the husband and wife – Whether the retention of the proceeds of sale by the third respondent was unconscionable – Whether the wife was suffering under a special disadvantage which seriously affected her ability to make a judgment as to her interests – Where the evidence does not support a finding of unconscionability – Where not being fully informed is insufficient to meet the standard of special disadvantage – Where an apparent lack of benefit is insufficient to establish unconscionability – Where there was no basis for the imposition of a constructive trust – Where there has been a completed gift of the proceeds of sale to the third respondent – Where the outcome is not the outcome contended for at the hearing by the husband but it is the inevitable legal effect – Where the third respondent will retain the proceeds of sale – Where there is then no property to be divided – Where the proceedings for property division under s 79 of the Family Law Act 1975 (Cth) must be dismissed – Appeal allowed.

FAMILY LAW – APPEAL – PROPERTY – Whether the primary judge should have considered the appellant’s claim for spousal maintenance – Where the application was recorded by the primary judge but not dealt with – Where the matter will be remitted to the Family Court of Australia for rehearing in respect to spousal maintenance.

FAMILY LAW – APPEAL – COSTS – Orders made for the provision of written submissions as to costs – If submissions are not received, then there will be no order as to costs.

Corporations Act 2001 (Cth) ch 2D, ss 181, 182
Family Law Act 1975 (Cth) s 79
Federal Proceedings (Costs) Act 1981 (Cth)
Barnes v Addy (1873) 28 LT (NS) 398
Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447; [1983] HCA 14
Corin v Patton (1990) 169 CLR 540; [1990] HCA 12
Kakavas v Crown Melbourne Ltd (2013) 250 CLR 392; [2013] HCA 25
Lewis v Condon; Condon v Lewis (2013) 85 NSWLR 99; [2013] NSWCA 204
Metwally v University of Wollongong (1985) 60 ALR 68; [1985] HCA 28
Muschinski v Dodds (1985) 160 CLR 583; [1985] HCA 78
Thorne v Kennedy (2017) 263 CLR 85; [2017] HCA 49
Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52
Wilton v Farnworth (1948) 76 CLR 646; [1948] HCA 20
APPELLANT: Mr Grange
FIRST RESPONDENT: Ms Grange
SECOND RESPONDENT: Ms A Grange
THIRD RESPONDENT: Ms B Grange
FILE NUMBER: ROC 580 of 2011
APPEAL NUMBER: NOA 19 of 2018
DATE DELIVERED: 7 November 2019
PLACE DELIVERED: Sydney
PLACE HEARD: Brisbane
JUDGMENT OF: Strickland, Ainslie-Wallace & Aldridge JJ

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Grange & Grange and Ors [2019] FamCAFC 205
Case
[2019] FamCAFC 205
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CaseChat Overview and Summary

The appeal in Grange & Grange and Ors concerned a dispute regarding the division of property between a husband and wife, with a third party also involved. The wife sought to have a constructive trust imposed over the proceeds of sale of a property held jointly by the husband and wife, arguing that the third respondent had held these proceeds on trust for the family. The appeal was heard in the Family Court of Australia, which ultimately dismissed the wife's application for property settlement orders. The husband appealed this decision, arguing that the wife did not suffer from a special disadvantage and that there was no basis for the imposition of a constructive trust. The court was required to determine whether the third respondent had held the proceeds of sale on trust for the family, whether the retention of the proceeds by the third respondent was unconscionable, and whether the wife was suffering under a special disadvantage which seriously affected her ability to make a judgment as to her interests.

The court found that the evidence did not support a finding of unconscionability on the part of the third respondent. The court held that the wife had not suffered a special disadvantage which seriously affected her ability to make a judgment as to her interests, and that the apparent lack of benefit to the third respondent was insufficient to establish unconscionability. The court also found that there was no basis for the imposition of a constructive trust, as there had been a completed gift of the proceeds of sale to the third respondent. As a result, the primary judge's orders were set aside and the application for property settlement orders under s 79 of the Family Law Act 1975 (Cth) was dismissed. However, the court found that the primary judge should have considered the appellant's claim for spousal maintenance, and this matter was remitted to the Family Court of Australia for rehearing.

The appeal was allowed and the orders made on 30 January 2018 were set aside. The application for property settlement orders under s 79 of the Family Law Act 1975 (Cth) was dismissed, as there was no property to be divided. The appellant's application for spousal maintenance was remitted to the Family Court of Australia for rehearing. Any party seeking an order for the costs of the appeal was required to file and serve written submissions within 28 days, with the opposing party to file and serve any written submissions in reply within a further 14 days. The party seeking the costs may file and serve submissions in response within a further 7 days. The form of the order was subject to the entry of the order in the Court’s records.

Orders

Orders of the court

1.

The appeal be allowed.

2.

The orders made on 30 January 2018 be set aside.

3.

The application for property settlement orders under s 79 of the Family Law Act 1975 (Cth) be dismissed.

4.

The appellant’s application for spousal maintenance be remitted to the Family Court of Australia for rehearing.

5.

Any party seeking an order for the costs of the appeal is to file and serve written submissions within twenty-eight (28) days, with the opposing party to file and serve any written submissions in reply within a further fourteen (14) days. The party seeking the costs may file and serve submissions in response within a further seven (7) days.

Note: The form of the order is subject to the entry of the order in the Court’s records.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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