NSW Trustee and Guardian v Obeid (No 2)

In the matter of NSW Trustee and Guardian v Obeid (No 2), the NSW Court of Appeal was tasked with examining a claim made by the defendant, Obeid, against the plaintiff, the NSW Trustee and Guardian. Obeid sought to establish his interest in property that had been forfeited to the Crown under the Criminal Assets Recovery Act 1990 (NSW) and subsequently sold. The dispute centred on whether Obeid had an equitable interest in the property and if he could reclaim the proceeds from the sale.

The primary legal issues before the court were whether Obeid could establish a beneficial interest in the property to support a resulting trust and whether he could claim a constructive trust over the property. Additionally, the court had to consider whether Obeid could pursue an in personam remedy against the plaintiff and if any statutory remedy was available under the Criminal Assets Recovery Act.

The court found that Obeid's claim for a resulting trust was unsupported by evidence of the necessary intention for him to acquire an equitable interest in the property. It was held that the inferences drawn in Jones v Dunkel were not applicable in this case, and therefore, Obeid could not establish a beneficial interest. Regarding the constructive trust, the court held that since the plaintiff was a volunteer with no prior notice of Obeid’s claimed interest, the indefeasibility of title under the Real Property Act 1900 (NSW) meant that Obeid’s after-acquired notice did not defeat the registered title. The court concluded that Obeid could not pursue an in personam remedy against the plaintiff and that no statutory remedy was available under the Criminal Assets Recovery Act.

The court dismissed Obeid’s claims in their entirety, and the orders were made in favour of the plaintiff.