Johnson v Johnson

Case [1999] FamCA 369


[1999] FamCA 369

FAMILY LAW ACT 1975

IN THE FULL COURT  
OF THE FAMILY COURT OF AUSTRALIA  Appeal No WA15 of 1998
AT PERTH  File No PT2827 of 1995

BETWEEN:

MR JOHNSON
Appellant Husband
- and -

MS JOHNSON
Cross-Appellant Wife

REASONS FOR JUDGMENT OF THE FULL COURT

CORAM:  ELLIS, KAY AND DESSAU JJ
DATE OF HEARING:  11, 12, 13, 14, 15, 18, 19 and 20 January 1999
DATE OF JUDGMENT:                  31 March 1999

APPEARANCES:  Mr Udorovic, one of Her Majesty’s Counsel, and Dr Ingleby of Counsel, instructed by Messrs Paterson & Dowding, 28 The Esplanade, Perth WA 6000, appeared on behalf of the Appellant

Husband.

Mr Kirk, Senior Counsel, and Mr Wilson of Counsel, instructed by Kim Wilson & Co., 123B Colin Street, West Perth WA 6005, appeared on behalf of the Cross-Appellant Wife.

JOHNSON and JOHNSON

WA15 of 1998
Coram:   Ellis, Kay and Dessau JJ
Date of appeal:      11 – 15, 18 – 20 January 1999
Date of judgment:  31 March 1999

APPEALS - From decision of Family Court Judge - Powers and discretion of Full Court - Insufficiency of reasons - Findings made on no or inadequate evidence - Re-exercise of discretion under Warren v Coombes principle.

PROPERTY – ADJUSTMENT in relation to marriage - Value of Property - Company shares - Expert Evidence - c$15m in overseas assets included in pool by trial Judge - Whether held beneficially for party - Contributions - Appeal ground not pursued - Parties' liability for tax losses and penalties.

COURTS AND JUDGES - Disqualification for bias - Apprehension of Bias - Before hearing from the husband the Judge said he would look principally to evidence of witnesses other than the parties to determine the facts - Statement clarified by its context - Bias not made out.

H and W commenced cohabitation in 1974 and married in 1979.  They each had adult children from their first marriages.  A decree nisi became absolute in mid-1996.  W brought property proceedings in the Family Court of Western Australia.  H was a successful business person, with significant business interests focused on the primary sector.  W worked in an administrative role with H during the marriage.

At trial The primary judge found an asset pool of c$30m.  This included Australian assets held in H and W’s names of c$15m, and offshore assets of a further c$15m.  His Honour apportioned the asset pool 60% in favour of H. 

H appealed against findings that he had a beneficial interest in certain assets and the inclusion of those assets in the pool.  H sought to rely on grounds summarised as insufficient reasons, bias, evidence wrongly admitted, wrong findings or findings made on insufficient evidence, errors in the asset pool, wrong credit findings, contribution (which was abandoned), and the form and effect of orders. 

W cross-appealed, claiming that the trial Judge undervalued shares in B Ltd ( a company which received concessional tax treatment under the Pooled Development Fund Act 1992 (Cth) and which held shares in other entities…

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Details
AGLC
Johnson v Johnson [1999] FamCA 369
Case
[1999] FamCA 369
Decision Date

CaseChat Overview and Summary

This matter concerned an appeal and cross-appeal from decisions of a judge of the Family Court of Australia. The primary dispute involved the division of property following the breakdown of a marriage, with particular focus on the valuation and inclusion of company shares and overseas assets within the marital pool. A further issue raised was whether the trial judge demonstrated bias.

The Full Court of the Family Court was required to determine whether the trial judge had erred in their findings regarding the value of property, specifically company shares and overseas assets, and whether these assets were held beneficially for one of the parties. The court also had to consider whether the judge’s conduct gave rise to an apprehension of bias, and if so, whether this warranted disqualification. Finally, the court was tasked with determining the parties' liability for tax losses and penalties.

The court addressed the alleged bias by examining the context of the judge's statement that they would look principally to evidence other than that of the parties. The Full Court concluded that, when viewed in its proper context, the statement did not demonstrate bias. Regarding the property adjustment, the court applied the principles established in *Warren v Coombes* to re-exercise the discretion where findings were made on insufficient evidence. The court found that certain overseas assets had been incorrectly included in the property pool and that the valuation of company shares required adjustment.

The appeal was allowed in part, leading to a variation of the property adjustment orders to reflect a reduced sum for the appellant. The cross-appeal was dismissed. The court also varied orders concerning the inclusion of penalties in the adjustment of property and reserved the question of costs.

Orders

Orders of the court

1. That order 11 of the updated revised amended minute of orders incorporated by reference the orders of the primary judge made 17 July 1998 be varied by substituting for the sum "$7,440,087" therein appearing the sum "$5,504,118"

2. That order 11A of the updated revised amended minute of orders incorporated by reference in the orders of the primary judge made 17July 1998 be varied by deleting sub-paragraphs (f) and (g) thereof and by substituting for the sum "$1,000,000" appearing in sub-paragraph (e) thereof the sum "$504,118", and by renumbering subparagraph (h) as (f).

3. That order 27 of the updated revised amended minute of orders incorporated by reference in the orders of the primary judge made 17July 1998 be varied by deleting therefrom the words "excluding any penalties arising " and inserting in subparagraph (a) thereof after the word "interest" the words "and penalties".

4. That orders 28 and 29 of the updated revised amended minute of orders incorporated by reference in the orders of the primary judge made 17 July 1998 be varied by deleting therefrom the words "excluding penalties".

5. That the appeal be otherwise dismissed.

6. That the cross-appeal be dismissed.

7. (a) The appellant be at liberty to file and serve written submissions as to costs of this appeal and the appeal against the costs orders made at the trial herein within twenty-one (21) days of this date.

(b) The respondent be at liberty to file and serve written submissions in answer thereto within twenty one (21) days thereafter.

(c) The appellant be at liberty to file and serve written submissions in reply thereto within a further ten (10) days.

Background

Background to the litigation

BACKGROUND ORDERS APPEALED FROM ORDERS SOUGHT NOTICE OF APPEAL THE CROSS APPEAL THE APPEAL PROCEEDINGS RELEVANT PRINCIPLES STRUCTURE OF THIS JUDGMENT D FOUNDATION BIAS SUMMARY OF CONCLUSIONS ORDERS

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

SUMMARY OF CONCLUSIONS ORDERS

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.