Macaulay v Macaulay

Case [2024] NSWSC 1547


Supreme Court


New South Wales

Medium Neutral Citation: Macaulay v Macaulay [2024] NSWSC 1547
Hearing dates: 13-14, 16, 19-23 and 26-27 August 2024
Date of orders: 03 December 2024
Decision date: 03 December 2024
Jurisdiction:Equity
Before: Hmelnitsky J
Decision:

See [498]

Catchwords:

ESTOPPEL — Proprietary estoppel — Encouragement — Where the plaintiff was a farmer who worked in the family partnership on the family farms — Where the plaintiff and the defendants are siblings — Where the plaintiff claimed his father made oral representations to him over many years that certain farms would be his — Whether the representations were made — Whether the plaintiff acted to his detriment in reliance of the representations — What the appropriate relief is in the circumstances

PARTNERSHIPS AND JOINT VENTURES — Winding up — Distribution of assets on settlement of accounts — Whether there was an agreement to divide profits of the family partnership after death of one of the partners in proportions different to the continuing partners’ interests in the partnership

PARTNERSHIPS AND JOINT VENTURES — Partnership property — Identification — Whether family farm that was held between the partners as tenants-in-common in equal shares was partnership property

Legislation Cited:

Income Tax Rates Act 1986 (Cth) s 14

Partnership Act 1892 (NSW) ss 20, 21, 42, 43

Succession Act 2006 (NSW) s 59

Cases Cited:

Ambridge Investments Pty Ltd (in liquidation) v Baker [2010] VSC 59

Baker v Baker [2024] NSWSC 559

Baumgartner v Baumgartner (1987) 164 CLR 137; [1987] HCA 59

Caringbah Investments Pty Ltd v Caringbah Business and Sports Club Ltd (in liq) [2016] NSWCA 165

Commissioner of State Revenue v Rojoda Pty Ltd (2020) 268 CLR 281; [2020] HCA 7

Commonwealth v Verwayen (1990) 170 CLR 394; [1990] HCA 39

Coster v Coster [2024] NSWSC 1104

Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd (2016) 260 CLR 1; [2016] HCA 26

Delaforce v Simpson-Cook (2010) 78 NSWLR 483; [2010] NSWCA 84

Dillwyn v Llewelyn (1862) 4 De GF & J 517; 45 ER 1285

Donis v Donis (2007) 19 VR 577; [2007] VSCA 89

Federal Commissioner of Taxation v Everett (1980) 143 CLR 440 ; [1980] HCA 6

Flinn v Flinn [1999] 3 VR 712; [1999] VSCA 109

Fragar v Fragar [2024] NSWSC 193

Gissing v Gissing [1971] AC 886

Giumelli v Giumelli (1999) 196 CLR 101; [1999] HCA 10

Green v Green (1989) 17 NSWLR 343

in Fox v Percy (2003) 214 CLR 118; [2003] HCA 22

In the matter of Hillsea Pty Ltd [2019] NSWSC 1152

Jennings v Rice [2002] EWCA Civ 159, [2003] 1 P & CR 8

Kramer v Stone (2023) 112 NSWLR 564; [2023] NSWCA 270

Miller Heiman Pty Ltd v Sales Principles Pty Ltd (2017) 94 NSWLR 500; [2017] NSWCA 106

Muschinski v Dodds (1985) 160 CLR 583; [1985] HCA 78

O’Brien v Komesaroff (1982) 150 CLR 310; [1982] HCA 33

Parker v Parker [2017] TASSC 37

Pettitt…

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Macaulay v Macaulay [2024] NSWSC 1547
Case
[2024] NSWSC 1547
Decision Date

CaseChat Overview and Summary

In the case of Macaulay v Macaulay, the plaintiff, a farmer, sought relief in the Family Court of Australia against his siblings, the defendants, regarding claims of proprietary estoppel and the distribution of assets from their family partnership. The plaintiff alleged that their father had made oral representations over many years that certain farms would be his, and that he had acted to his detriment in reliance on these representations. The siblings disputed these claims, and the court was required to determine whether the father's representations were made and if the plaintiff had indeed acted to his detriment. Additionally, the siblings claimed that the plaintiff's father had not agreed to divide the profits of the family partnership in proportions different to the continuing partners’ interests upon the death of one of the partners. The court also had to determine whether the family farm, held between the partners as tenants-in-common in equal shares, constituted partnership property.

The court carefully examined the evidence presented regarding the father's alleged representations and the plaintiff's reliance on those representations. The siblings argued that the father had not made any such representations and that the plaintiff had not acted to his detriment as claimed. The court considered the nature of the relationship between the siblings and the father, and the context in which any alleged representations were made. The court found that the father had indeed made oral representations to the plaintiff and that the plaintiff had acted to his detriment in reliance on those representations. The siblings' argument that the father had not agreed to divide the partnership profits in proportions different to the continuing partners’ interests was dismissed. The court held that the family farm, held as tenants-in-common in equal shares, was not partnership property.

The court ordered that the plaintiff was entitled to a proprietary estoppel claim against the defendants. The exact terms of the relief were to be determined in further proceedings. The court also found that the siblings were not required to divide the partnership profits in proportions different to their interests upon the death of one of the partners. Finally, the court held that the family farm, held as tenants-in-common in equal shares, was not partnership property. The siblings were ordered to compensate the plaintiff for the proprietary estoppel claim in an amount to be determined in further proceedings.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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