Hellenic Property Holdings Pty Ltd v Makaritis

The case of *Hellenic Property Holdings Pty Ltd v Makaritis* involved a dispute between Hellenic Property Holdings Pty Ltd (HPH), a company controlled by Luke Makaritis, and Bill Makaritis, Luke's father. The core of the dispute concerned the beneficial ownership of a property that had been sold to HPH. Bill Makaritis contended that there was a joint endeavour between himself and his son, Luke, pursuant to which he was entitled to continue residing at the property after its sale to HPH. He further argued that he had provided funds towards the property's costs and renovations, and that the principles established in *Baumgartner v Baumgartner* were applicable. HPH challenged the findings regarding the existence and termination of this alleged joint endeavour, particularly concerning whether Bill's departure from the property was without attributable blame. The matter was heard in the Court of Appeal of New South Wales.

The legal issues before the court included whether a constructive trust should be imposed on the property in favour of Bill Makaritis based on a failed joint endeavour. Specifically, the court was required to determine if the evidence supported the existence of a joint endeavour between Bill and Luke, and if so, whether that endeavour had ended without blame attributable to Bill. If a constructive trust was found to exist, the court also had to consider the appropriate form of that trust, including whether it should be for sale with a division of net proceeds, the return of contributions, and the sharing of any surplus.

The Court of Appeal dismissed the appeal, upholding the primary judge's findings. The court applied the principles from *Baumgartner v Baumgartner*, which allows for the imposition of a constructive trust where contributions are made to property in furtherance of a joint endeavour, and that endeavour is later dissolved without attributable blame to one party. The court found that the evidence supported the existence of a joint endeavour between Bill and Luke concerning the property, and that Bill's departure from the property was not due to any fault on his part. Consequently, the court affirmed the imposition of a constructive trust for the sale of the property and the division of the net proceeds, taking into account contributions made by Bill.

The orders of the court were that the appeal be dismissed, and that Hellenic Property Holdings Pty Ltd pay the respondent's costs of the appeal.