Hunter Resources Ltd v Melville

Hunter Resources Ltd (appellant) and Melville (respondent) were parties to litigation concerning a dispute over the respondent's entitlement to a share of profits from the sale of certain mining tenements. The case was heard by the High Court of Australia.

The central legal issues before the High Court were whether the respondent had established a claim for an account of profits, and if so, the basis upon which such an account should be taken. Specifically, the court considered the nature of the respondent's interest in the tenements and the principles governing the award of an account of profits in equity.

The High Court determined that the respondent had established a proprietary interest in the tenements, which gave rise to an equitable right to an account of profits. The court reasoned that the appellant, by acquiring the tenements in circumstances that gave rise to a constructive trust, was liable to account to the respondent for profits derived from their exploitation. The principles applied focused on the equitable duty owed by a constructive trustee to a beneficiary, including the obligation to account for profits made from the trust property. The court found that the appellant had breached this duty.

The High Court ordered that an account of profits be taken.