Purnell v Purnell

Case [2024] QDC 79


DISTRICT COURT OF QUEENSLAND

CITATION: 

Purnell v Purnell [2024] QDC 79

PARTIES: 

DAVID JOHN PURNELL
(Plaintiff)

v

DONNA GAYE PURNELL
(Defendant)

FILE NO:

5/21

DIVISION:

Civil

PROCEEDING:

Claim

ORIGINATING COURT: 

District Court

DELIVERED ON:

23 May 2024 (ex tempore)

DELIVERED AT:

Gympie

HEARING DATE: 

23 May 2024

JUDGE:

Porter KC DCJ

ORDERS:

THE COURT DECLARES THAT:

The defendant holds legal title to the property at Lot 78 on Registered Plan 157641, Title Reference 15748014 (the “Glenwood Property”) on constructive trust for the plaintiff and the defendant as tenants in common in equal shares;

THE COURT ORDERS THAT:

1.   The plaintiff pay the defendant $3500; and

2. Pursuant to section 114(3)(a) Land Title Act 1994, David John Purnell and Donna Gaye Purnell be recorded as registered proprietors of the Glendwood Property as tenants in common in equal shares.

CATCHWORDS:

EQUITY – TRUSTS – CONSTRUCTIVE TRUST – Where the plaintiff alleges he contributed purchase money to the acquisition of a property by the defendant – where the Property was bought pursuant to an understanding as to joint ownership and use – where the agreement as to ownership and use was vague and was frustrated by subsequent events – whether a resulting or constructive trust arose

COUNSEL:

Mr P Hanlon for the plaintiff

The defendant appeared in person

SOLICITORS:

L&S Lawyers for the plaintiff

The issues

  1. The plaintiff, Mr Purnell, and the defendant, Ms Purnell, are brother and sister. On or about 25 June 2018, Ms Purnell settled on a contract to acquire a property at Lot 78 Pine Ridge Road at Glenwood (the Property). Glenwood is a township, about 40 kilometres North of Gympie. The purchase price was about $46,000. Even allowing for the passing of time, it was a modest purchase. However, it was common ground that since June 2018, the unimproved value of the land has increased to at least $170,000.

  2. Although, Ms Purnell was the registered proprietor, her brother resided on the Property from time to time. In about February 2021, Ms Purnell informed her brother she had sold the Property, and he was given three days to vacate. Mr Purnell lodged a caveat and refused to vacate, and on 1 April 2021, Mr Purnell commenced these proceedings to make good the interest asserted in the caveat.

  3. Mr Purnell’s caveat asserts an interest in the Property pursuant to an implied resulting or constructive trust. By these proceedings, Mr Purnell sought:

    (a)A declaration that he was entitled to remain living on the Property;

    (b)A declaration that he is the beneficiary of an implied, resulting or constructive trust as to a two-thirds interest in the Property; and

    (c)Consequential orders for him to be registered as proprietor of a two-thirds interest in the Glenwood Property as tenants in common with the defendant.

  4. In submissions Mr Hanlon (who appeared for Mr Purnell) had abandoned the application for the first declaration. No such declaration could, or would, ever have been made.  Mr Hanlon also varied the terms of the trust…

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Details
AGLC
Purnell v Purnell [2024] QDC 79
Case
[2024] QDC 79
Decision Date

CaseChat Overview and Summary

The plaintiff, David John Purnell, sought to establish that a constructive trust existed over a property at Glenwood, which was held in the name of the defendant, Donna Gaye Purnell. The plaintiff argued that he had contributed to the purchase price of the property and that there was an understanding between the parties that they would jointly own and use the property. The Supreme Court of Queensland was tasked with determining whether the evidence supported the existence of such a trust.

The central legal issue before the court was whether the plaintiff's contributions to the purchase of the property, coupled with the alleged agreement regarding joint ownership and use, were sufficient to establish a constructive trust. The court had to consider the nature of the agreement between the parties, the extent of the plaintiff's contributions, and whether there was a clear intention to create a joint ownership arrangement. Additionally, the court needed to assess whether a resulting trust could be implied due to the plaintiff's financial contributions.

In reaching its decision, the court found that while the agreement between the parties was vague and not expressly articulated, the conduct and circumstances surrounding the purchase of the property indicated an understanding of joint ownership. The court concluded that the plaintiff's financial contributions and the overall context of the transaction supported the imposition of a constructive trust. The court determined that the plaintiff and defendant held the property as tenants in common in equal shares. The court ordered that the property be registered in the names of both parties as tenants in common and that the plaintiff pay the defendant $3500.

The court's orders reflect its determination that the defendant holds the Glenwood Property on constructive trust for both parties as tenants in common in equal shares. The court further ordered that the names of both parties be recorded as registered proprietors of the property under the Land Title Act 1994, and that the plaintiff pay the defendant $3500.

Orders

Orders of the court

THE COURT DECLARES THAT:

The defendant holds legal title to the property at Lot 78 on Registered Plan 157641, Title Reference 15748014 (the “Glenwood Property”) on constructive trust for the plaintiff and the defendant as tenants in common in equal shares;

THE COURT ORDERS THAT:

1. The plaintiff pay the defendant $3500; and

2. Pursuant to section 114(3)(a) Land Title Act 1994, David John Purnell and Donna Gaye Purnell be recorded as registered proprietors of the Glendwood Property as tenants in common in equal shares.

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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