Mendonca v Tonna

Case [2020] NSWCA 196


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Mendonca v Tonna [2020] NSWCA 196
Hearing dates: 13 August 2020
Decision date: 26 August 2020
Before: Bell P at [1]
Meagher JA at [3]
Payne JA at [49]
Decision:

1. Appellant’s amended notice of motion filed 1 July 2020 dismissed.

2. Appeal dismissed.

3. Appellant pay respondents’ costs of the appeal.

Catchwords:

EQUITY — Trusts and trustees — Resulting trusts — Purchase money trusts — Where funds contributed to purchase of property — Whether primary judge erred in finding that presumption of resulting trust not rebutted

LANDLORD AND TENANT — Agreements for lease — Creation — Where final page of residential tenancy agreement signed — Where dispute as to whether signature genuine — Whether primary judge erred in not being satisfied that any agreement giving rise to residential tenancy

COSTS — Party/Party — Exercise of discretion — Whether discrete and separable issues justifying departure from order that costs follow event

Legislation Cited:

Supreme Court Act 1970 (NSW)

Uniform Civil Procedure Rules 2005 (NSW)

Cases Cited:

Calverley v Green (1984) 155 CLR 242; [1984] HCA 81

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

Roache v News Group Newspapers Ltd [1998] EMLR 161

Searle v Commonwealth of Australia (2019) 100 NSWLR 55; [2019] NSWCA 127

Category:Principal judgment
Parties: Renuka Mendonca (appellant)
Mark Tonna (first respondent)
Lorraine Tonna (second respondent)
Representation:

Counsel:
Appellant (self-represented)
P Newton and J Gatland (first and second respondents)

Solicitors:
Appellant (self-represented)
Adams & Partners (first and second respondents)
File Number(s): 2020/13642
Publication restriction: N/A
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Civil
Citation:

[2019] NSWSC 1849

[2020] NSWSC 306

Date of Decision:
20 December 2019
Before:
Ward CJ in Eq
File Number(s):
2016/00182075
2017/00292576

HEADNOTE

[This headnote is not to be read as part of the judgment]

The respondents made an offer to purchase a property at Galston in late 2013. That offer was accepted. They were unable to obtain finance to complete the purchase, and the completion date was extended to 31 January 2014. Ultimately the appellant agreed to purchase the Galston property from the respondents for the same price as they agreed with the vendor. The purchases were completed on 31 January 2014, with the property being transferred from the original owners to the respondents, and then to the appellant. At settlement the appellant contributed $1.08 million to the purchase of the property, which she obtained through a loan secured by first mortgage. The respondents contributed the deposit, the balance of the purchase price, and also paid stamp duty and solicitors’ fees. There was no written agreement recording the basis on which the appellant was to purchase and hold the property for the respondents.

The respondents claimed that the appellant had agreed to purchase the Galston property and hold it on trust for them until they were able to secure funds from the sale of their previous home to discharge the…

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Mendonca v Tonna [2020] NSWCA 196
Case
[2020] NSWCA 196
Decision Date

CaseChat Overview and Summary

The appeal concerned a dispute between Mr. Mendonca (the appellant) and Mr. and Mrs. Tonna (the respondents) regarding the beneficial ownership of a property. The primary judge had found that the appellant had not rebutted the presumption of a resulting trust in favour of the respondents, despite the appellant having contributed funds towards the purchase of the property. The appellant also contended that the primary judge erred in not being satisfied that a residential tenancy agreement existed, as the genuineness of a signature on the final page of the document was disputed.

The Court of Appeal was required to determine whether the primary judge had erred in finding that the presumption of a resulting trust was not rebutted by the appellant. Additionally, the court had to consider whether the primary judge was correct in not being satisfied that a residential tenancy agreement had been created, given the dispute over the signature. Finally, the court was asked to consider whether the primary judge’s costs order, which generally followed the event, was a proper exercise of discretion, particularly in relation to discrete and separable issues.

The Court of Appeal upheld the primary judge’s findings. Regarding the resulting trust, the court found no error in the primary judge’s assessment that the appellant had failed to rebut the presumption. The court also agreed with the primary judge’s conclusion that the evidence did not establish the existence of a residential tenancy agreement. Consequently, the court dismissed the appellant’s amended notice of motion and the appeal, ordering the appellant to pay the respondents’ costs of the appeal.

Orders

Orders of the court

1. Appellant’s amended notice of motion filed 1 July 2020 dismissed.

2. Appeal dismissed.

3. Appellant pay respondents’ costs of the appeal.

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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