Lindsay and Lindsay & Ors

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FAMILY COURT OF AUSTRALIA

LINDSAY & LINDSAY AND ORS [2014] FamCA 401

FAMILY LAW – PROPERTY –  Property Settlement – Where wife asserts property of the parties includes a 1/3 interest in a family partnership – Where husband and other respondents deny any such interest is held by either the husband or wife – Where wife pleaded 11 representations had been made to her by one or more of the respondents which were denied or alternatively said not to have the meaning for which the wife contends – Where wife made pleadings on the basis of partnership or in the alternative of joint venture, estoppel or constructive trust – Where convenient for the court to deal with the facts generally and proceed to a consideration of the individual pleaded claims to determine if they are made out – Where court not satisfied that any such representations had been made, or if made they had not been so in the way contended by the wife.

FAMILY LAW – PROPERTY – Partnership – Where court considered the definition of partnership as provided for in section 5 of the Partnership Act 1891 (Qld) – Where court considered in deciding whether or not a partnership exists section 6 of the Act sets out rules to which regard must be had which includes the receipt of a person of the profits of a business if prima facie evidence that the person is a partner in business – Where the court noted that whether or not persons are carrying on a business in common is a matter of fact and noted ‘the test of whether a business is being carried on in common can be reduced to the proposition: is the person who carries on that business doing so as agent for all the persons who are alleged to be partners?’ – Where court found a partnership relationship is founded in contract – Where the court found there was no existence of a partnership as there was never any discussion, much less agreement about the formation of a partnership attendant upon the marriage of the husband and wife; and that thereafter the parties have conducted themselves in a manner inconsistent with there being an extant farming partnership as asserted by the wife – Where the court further found that the absence of any liability on the part of any asserted partners other than the second and third respondents tells against the existence of a partnership – Where correspondence was also inconsistent with there being a partnership.

FAMILY LAW – PROPERTY – Joint Venture – Where wife asserts in the alternative  the property of the wife and husband includes a 1/3 interest in a joint venture – Where the court noted the critical test of the joint venture concept arises where participants intend to be involved in the supervision of an integrated business activity – Where found the foundation of a joint venture must be in an agreement which in order to be enforceable needs to…

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Details
Case
[2014] FamCA 401
Decision Date

CaseChat Overview and Summary

In the matter of *Lindsay and Lindsay & Ors*, the wife sought declarations regarding her interest in a family business, alleging the existence of a partnership or joint venture with the respondents. The husband and other respondents denied that either the husband or the wife held any such interest. The wife's claims were pleaded on the basis of partnership, joint venture, estoppel, or constructive trust, asserting that representations had been made to her by one or more of the respondents. Tree J of the Family Court of Australia considered the evidence generally before examining each of the wife's pleaded claims.

The court was required to determine whether a partnership or joint venture existed between the wife and the respondents, whether the respondents were estopped from denying such an arrangement, and whether a constructive trust was imposed over certain properties and business interests in favour of the wife and husband. In relation to the partnership claim, the court considered the definition of partnership under the *Partnership Act 1891* (Qld), including the rules regarding the receipt of profits as prima facie evidence of partnership and the test of whether a business is being carried on in common. For the joint venture claim, the court focused on the intention of participants to be involved in the supervision of an integrated business activity. The estoppel claim required an assessment of whether a promise was made, whether there was reasonable reliance on that promise, and whether detriment was suffered. Finally, the constructive trust claim was to be considered on the bases of common intention, unconscionable denial of interest, and as a consequence of the asserted estoppel.

Tree J found that no partnership existed, noting the absence of any discussion or agreement about its formation and that the parties' conduct was inconsistent with such an arrangement. The court also found that the lack of liability for asserted partners other than two respondents and the content of correspondence were inconsistent with a partnership. Similarly, the court found no joint venture, as the foundation of a joint venture must be an agreement supported by consideration, and the absence of liability for certain asserted partners and the correspondence were also inconsistent with this claim. Regarding estoppel, the court held that the wife's claim failed because the existence of the alleged representations was not established, and even if they had been made, reliance on them would not have been reasonable given the lack of formal confirmation and their context within inconclusive family negotiations. Furthermore, no detriment flowed to the wife. Consequently, the court found no constructive trust existed.

The wife's applications for declarations that a partnership and/or joint venture existed, that the respondents were estopped from denying such an arrangement, and that certain properties and interests were held subject to a constructive trust were all dismissed.

Orders

Orders of the court

1.

The wife’s Application for a declaration that a partnership and/or joint venture existed between her and the respondents in relation to the family business “R & A Lindsay” and any associated family business operations from … July 1997, be dismissed.

2.

The wife’s Application for a declaration that the respondents be estopped from denying the existence of a partnership and/or joint venture with the applicant, be dismissed.

3.

The wife’s Application for a declaration that the properties “Property P” and “Property B” and proceeds of the sale of “Property G” and the interest in water allocation described as “Allocation No. …10 on Crown Plan … contained in Title Reference …” are held subject to a Constructive Trust in favour of the applicant wife and the first respondent husband in such proportions as the court deems fit, be dismissed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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