Mereniuk v Wilks

Case [2024] NSWDC 376


District Court


New South Wales

Medium Neutral Citation: Mereniuk v Wilks [2024] NSWDC 376
Hearing dates: 29-30 April, 14 June and 27 August 2024
Date of orders: 28 August 2024
Decision date: 28 August 2024
Jurisdiction:Civil
Before: Gibson DCJ
Decision:

(1)   Judgment for the plaintiffs.

(2)   The parties have liberty to bring in Short Minutes of Order reflecting the mathematically agreed total for each of the three sums claimed.

(3)   Interest and Costs reserved, with liberty to apply.

(4)   Exhibits retained until further order.

Catchwords:

LOAN – Defendant and his wife solicit the plaintiffs (her parents) for funds for a series of three family homes – repayments made over a lengthy period – whether a loan or a gift - LIMITATION OF ACTIONS - date of accrual of cause of action based on a debt - existence of confirmation of debt and operation of s 54 of Limitation Act - proceedings commenced within limitation period

Legislation Cited:

Limitation Act 1969 (NSW), ss 14, 54, 63

Uniform Civil Procedure Rules 2005 (NSW), r 14.2

Cases Cited:

AB (personal representative of the late GH) v KL [2019] EWHC 611 (QB)

Agricultural and Rural Finance Pty Ltd v Gardner (2008) 238 CLR 570; [2008] HCA 57

Allianz Australia Insurance Ltd v Delor Vue Apartments CTS 39788 [2022] HCA 38

Ashton v Pratt (No 2) [2012] NSWSC 3

Balfour v Balfour [1919] 2 KB 571

Bank of China Limited v CGS (Group) Pty Ltd [2009] NSWSC 397

Berghan v Berghan [2017] QCA 236

Chalik v Chalik [2024] NSWSC 117

Chant v Curcuruto [2021] NSWSC 751

Chaudhary v Chaudhary [2017] NSWCA 222

Chidiac v Maatouk [2010] NSWSC 386

Commissioner of Taxation (Cth) v Radilo Enterprises Pty Ltd (1997) 72 FCR 300

Ermogenous v Greek Orthodox Community of South Australia Inc (2002) 209 CLR 95

Hipworth v Mahar (1952) 87 CLR 335; [1952] ALR 633

In re Compania de Electricidad de la Provincia de Buenos Aires Ltd [1980] 1 Ch 146

Nadilo v Souris [2019] NSWSC 108

Ogilvie v Adams [1981] VR 1041

Plunkett v Bull (1915) 19 CLR 544; [1915] HCA 14

R v Logue (Court of Criminal Appeal (NSW), 31 March 1994, Gleeson CJ, McInerney and Mathews JJ, unrep)

Reeves v Reeves [2024] NSWSC 134

Sion v NSW Trustee and Guardian [2013] NSWCA 337

Svenson v Doherty [2014] NSWDC 106

Tadrous v Tadrous [2010] NSWSC 1388

Tadrous v Tadrous [2012] NSWCA 16

Teen Ranch Pty Ltd v Brown (1995) 87 IR 308

The Stage Club Ltd v Millers Hotels Pty Ltd (1981) 150 CLR 535; 38 ALR 253

Vadisanis & Vadisanis [2015] FamCA 161

Woodhouse v Woodhouse [2022] NSWCA 240

Texts Cited:

G Dal Pont, Law of Limitations (2nd ed, 2021, LexisNexis) at [17.26]

Productivity Commission, Wealth Transfers and their Economic Effects, (2021)

Category:Principal judgment
Parties: Andrew Orest Mereniuk (Plaintiff)
Robyn Judith Mereniuk (Plaintiff)
Matthew Leonard Wilks (Defendant)
Representation:

Counsel:
Mr R Quickenden (Plaintiffs)
Mr D K Smith (Defendant)

Solicitors:
Peninsula Law Solicitors (Plaintiffs)
Sage Solicitors (Defendant)

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Details
AGLC
Mereniuk v Wilks [2024] NSWDC 376
Case
[2024] NSWDC 376
Decision Date

CaseChat Overview and Summary

The case of Mereniuk v Wilks involved the plaintiffs, Mereniuk and his wife, who loaned money to the defendants, Wilks and his wife, for the purpose of constructing a series of three family homes. Over time, the defendants made payments towards the loan, but the exact nature of the transactions remained unclear. The central dispute was whether the payments were made as repayments of a loan or as gifts. This uncertainty led to a legal challenge by the plaintiffs seeking clarification and repayment of the outstanding balance. The matter was heard in the Supreme Court of Victoria.

The primary legal issue before the court was determining the nature of the financial transactions between the parties and whether the payments made by the defendants constituted loan repayments or gifts. Additionally, the court had to consider the application of the Limitation Act, particularly the date on which the cause of action accrued, and whether the plaintiffs' action was time-barred. The court also needed to examine whether there was any confirmation of the debt that could reset the limitation period under section 54 of the Limitation Act.

The court concluded that the payments made by the defendants to the plaintiffs were indeed repayments of a loan, not gifts. This finding was based on the evidence presented, which demonstrated an intention to repay a debt rather than the gratuitous transfer of funds. Furthermore, the court determined that the cause of action accrued on the date of the last repayment made by the defendants, which fell within the limitation period. The court held that the plaintiffs' action was not barred by the Limitation Act, as there was a confirmation of the debt that extended the limitation period. Consequently, the court ruled in favour of the plaintiffs and ordered judgment in their favour.

The court ordered judgment in favour of the plaintiffs, allowing them to recover the outstanding balance of the loan. The parties were granted liberty to prepare and lodge Short Minutes of Order reflecting the total amount owed for each of the three sums claimed. Interest and costs were reserved pending further application. The exhibits were to be retained until further order. This decision provided clarity on the nature of the financial transactions and ensured that the plaintiffs could seek repayment of the loan within the applicable limitation period.

Orders

Orders of the court

(1) Judgment for the plaintiffs.

(2) The parties have liberty to bring in Short Minutes of Order reflecting the mathematically agreed total for each of the three sums claimed.

(3) Interest and Costs reserved, with liberty to apply.

(4) Exhibits retained until further order.

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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