LF v RA

In the case of LF v RA, the Queensland Supreme Court was asked to determine the property interests of the parties, LF and RA, following their separation after a de facto relationship. The dispute centred on the validity of a cohabitation agreement, which had been drafted by RA's solicitors, and the subsequent conduct of the parties that led LF to seek an adjustment of their property interests under the Property Law Act 1974. LF argued that the agreement was not binding due to her medical condition at the time it was signed and that RA's conduct post-agreement constituted a revocation of the agreement or amounted to serious injustice. The court was required to determine whether the agreement was binding, whether it could be set aside due to non est factum or subsequent conduct, and whether a just and equitable adjustment of property interests was warranted under the Act.

The court examined the circumstances surrounding the creation of the cohabitation agreement and found that LF had not participated in any discussion about it and had not read the documentation. Despite this, there was no evidence of deception on RA's part. The court considered the possibility of setting aside the agreement on the grounds of non est factum, which was rejected as LF's condition did not render the agreement so fundamentally different from what she believed it to be. The court also considered RA's conduct post-agreement, including increasing a mortgage debt that was LF's sole responsibility, but found that this did not amount to a revocation or constitute serious injustice sufficient to set aside the agreement. Given the unequal ownership of the properties and LF's contribution to the assets and ongoing liabilities, the court found that a just and equitable adjustment of property interests was necessary.

The court ordered that the parties hold specified properties as tenants in common, with LF receiving a financial adjustment to compensate for the unequal distribution of assets. The court also ordered that RA pay a sum of money to LF and that RA refinance the mortgages on the properties to release LF from any liability. The court further directed that the necessary documents be signed and executed to effect the transfer of LF's interest in the properties to RA and that RA indemnify LF against any ongoing liabilities associated with the properties until the transfer was complete. These orders were made to ensure a fair and equitable adjustment of the parties' property interests in light of the circumstances of their separation.