McKenzie v Storer

In the case of McKenzie v Storer, the Full Court of the Federal Court of Australia was tasked with resolving disputes between the parties over the existence of a contractual relationship, the nature of their domestic relationship, and the division of property interests. The primary issue was whether the parties had an agreement that created a contractual relationship, which would have implications for their rights and obligations under the contract. Additionally, the court needed to determine if the relationship between the parties could be classified as a "domestic relationship" for the purposes of the Family Law Act, and if so, how the property interests should be adjusted.

The court examined the evidence to ascertain if there was an intention to create a legal relationship, focusing on the nature of the agreements between the parties and the context in which they were made. The court concluded that the agreements between McKenzie and Storer were not intended to create a contractual relationship, primarily due to the absence of any formal documentation or explicit terms that would signify such an intention. Regarding the domestic relationship, the court found that the relationship, although non-sexual and non-familial, included support of a domestic nature. The contributions made by both parties were motivated by friendship and charity rather than a spousal-type arrangement. The court determined that the residence requirement was satisfied despite one party frequently being away, and periods of conflict and tension were considered when measuring the duration of the relationship. Consequently, the court found the relationship to be a domestic one under the Family Law Act.

The court ordered that the parties were to prepare agreed short minutes of order reflecting the court’s reasons or, failing agreement, present their respective contentions for the orders in short minutes to be scheduled with the associate of Stone J. This ensured that the court's decisions on the non-existence of a contractual relationship, the characterisation of the domestic relationship, and the adjustment of property interests were properly implemented.