Lai See Law by her Tutor the Protective Commissioner of New South Wales v Yan Mo

Lai See Law, through her tutor, the Public Trustee of New South Wales, initiated proceedings against Yan Mo, seeking to set aside a transfer of property from Lai See Law to Yan Mo, on the basis of undue influence. The case was heard in the Supreme Court of New South Wales. The primary legal issues were whether there was a presumption of undue influence due to the transfer of substantial property for a nominal consideration, and whether this presumption was successfully rebutted by the defendant. Additionally, the court had to determine whether a contract existed between the parties for the transfer of property and whether the defendant was entitled to recover the amount for renovations and care provided to the plaintiff.

The court considered the nature of the relationship between Lai See Law and Yan Mo, noting that Yan Mo had been a carer for Lai See Law. The court identified a relationship of trust and confidence, which triggered a presumption of undue influence. The onus was on Yan Mo to rebut this presumption. The court examined the evidence and concluded that while there was a contract for the transfer of property, the presumption of undue influence was not successfully rebutted. The court found that Yan Mo had not adequately demonstrated that the transfer was made with Lai See Law’s full comprehension and free consent. Regarding the cross-claim, the court determined that Yan Mo was not entitled to recover the amount for renovations and care provided to Lai See Law, as the underlying transfer of property was vitiated by undue influence.

As a result, the court ordered that the transfer of property from Lai See Law to Yan Mo be set aside. The court did not grant any recovery to Yan Mo for the renovations or care provided to Lai See Law. This decision underscores the importance of proving the absence of undue influence in cases involving vulnerable individuals and substantial property transfers.