Hughes v Sangster

Case [2019] ACTSC 178


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Hughes v Sangster

Citation:

[2019] ACTSC 178

Hearing Dates:

13-16 May 2019 and 12 June 2019

DecisionDate:

26 July 2019

Before:

Mossop J

Decision:

See [109]

Catchwords:

EQUITY – JOINT TENANCY – Severance – property purchased as joint tenants by mother and daughter – Agreement or understanding that each would contribute $190,000 – daughter contributes $20,000 – whether agreement or understanding varied so that amount of $125,000 is be deducted from required contribution or so that contributions to household reduced required contributions – constructive trust imposed on daughter’s interest in property.

Legislation Cited:

Civil Law (Property) Act 2006 (ACT), s 244

Guardianship and Management of Property Act 1991 (ACT), s 14

Evidence Act 2011 (ACT), dictionary cl 4(1)(c)

Cases Cited:

Baumgartner v Baumgartner (1987) 164 CLR 137

Bennett v Horgan (unreported, New South Wales Supreme Court, Bryson J, 3 June 1994)
Green v Green (1989) 17 NSWLR 343
Hill v Hill [2005] NSWSC 863
Kriezis v Kriezis [2004] NSWSC 167
Muschinksi v Dodds (1985) 160 CLR 583
Public Trustee of the Australian Capital Territory v Hall [2003] ACTCA 27
Watson v Foxman (1995) 49 NSWLR 315

Webb v Ryan [2012] VSC 377

Parties:

Christina Ella Hughes by her Guardian and Manager Warwick Samuel Hughes (Plaintiff)

Martell Justine Sangster (Defendant)

Representation:

Counsel

JA Rose (Plaintiff)

DA Hassall (Defendant)

Solicitors

Bradley Allen Love Lawyers (Plaintiff)

Legal on London (Defendant)

File Number:

SC 478 of 2017

MOSSOP J:

Introduction

  1. These are proceedings between a mother and her daughter.  Christine Hughes, the plaintiff, sues by her guardian and manager, Warwick Hughes.  She was 79 years old at the time of the hearing.  She suffers from Alzheimer’s dementia.  The defendant is Martell Sangster, the daughter of the plaintiff.  She was 50 years old at the time of the hearing.   The case relates to the respective interests of the plaintiff and the defendant in a property in Nicholls, a suburb of Canberra (the Nicholls property).  That land was acquired by the plaintiff and the defendant as joint tenants in 1999.  A house was constructed on the land and mother and daughter lived together along with the daughter’s family from the end of 2000.  Subsequently, in 2007, the defendant moved out of the property.  At about the time of the commencement of the proceedings in 2017, the plaintiff took steps to sever the joint tenancy with the effect that the parties are now tenants in common in equal shares.

  1. The substantial contest in these proceedings relates to:

(a)the nature of the agreement or understanding between the plaintiff and the defendant as to their joint ownership of the property;

(b)whether, and in what way, the agreement or understanding was varied; and

(c)the extent of contributions made to the acquisition and maintenance of the property pursuant to that agreement or understanding.

  1. The plaintiff’s case is that the agreement or understanding between the plaintiff and the defendant was one which required the defendant to pay to the plaintiff an amount…

Continue reading Hughes v Sangster

Sign in free to access the full text

Details
AGLC
Hughes v Sangster [2019] ACTSC 178
Case
[2019] ACTSC 178
Decision Date

CaseChat Overview and Summary

The case of Hughes v Sangster involved a dispute between a mother and daughter who held property as joint tenants. The central issue was whether the original agreement regarding their contributions to the purchase price of the property had been varied, and if so, to what extent. The daughter had contributed only $20,000 towards the property, instead of the agreed $190,000, and the mother argued that this shortfall should result in a constructive trust being imposed on the daughter's interest in the property. The court was required to determine whether an agreement or understanding existed, if it had been varied, and if any variation was legally enforceable.

The court examined the nature of the agreement between the parties and the circumstances surrounding the property purchase. It considered whether there was any evidence of a subsequent agreement that altered the original financial contributions or if there was a variation in the household contributions that reduced the required financial contributions. The court assessed the evidence and the relationship between the parties to determine if the daughter's reduced financial contribution was justified by any subsequent agreement or change in circumstances. The court concluded that there was an agreement that had been varied, which justified imposing a constructive trust on the daughter's interest in the property to reflect the true contributions.

The court held that a constructive trust should be imposed on the daughter's interest in the property, reflecting the original agreement and its variation. The court found that the daughter's reduced financial contribution did not absolve her of the obligation to contribute the full agreed amount, and the shortfall should be compensated through the imposition of the constructive trust. The court's decision was based on the evidence of the original agreement, the circumstances surrounding the property purchase, and the relationship between the parties. The final orders of the court required the daughter to compensate the mother for the shortfall in her contribution, effectively imposing a constructive trust on her interest in the property.

Orders

Orders of the court

See [109]

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.