Rix v Mahony (No 2)

The appeal in *Rix v Mahony (No 2)* concerned a dispute over the beneficial ownership of land transferred from parents to their daughter and son-in-law without consideration. The parents, who were living apart at the time of the transfer, sought to establish that their daughter held a one-half share of the property on trust for them as joint tenants. The matter came before the Court of Appeal of New South Wales, comprising Campbell, Meagher and Barrett JJA.

The central legal issue before the Court of Appeal was whether the parents had retained a beneficial interest in the property, specifically whether their daughter held her half-share on trust for them as joint tenants. This required the court to consider the intention of the parties at the time of the transfer, particularly in light of the parents' separation and the absence of consideration.

The Court of Appeal dismissed the appeal, upholding the primary judge's decision. Their Honours reasoned that the transfer of the property to the daughter and son-in-law, without consideration, did not create a trust in favour of the parents as joint tenants. The court found that there was no evidence to suggest an intention by the parents to retain a beneficial interest in the property as joint tenants, especially given their separation at the time of the transfer. The legal principles applied focused on the requirement for clear evidence of intention to create a trust, particularly where the purported beneficiaries were not the registered proprietors. The court concluded that the parents had not established the necessary intention for their daughter to hold her share on trust for them as joint tenants.

The appeal was dismissed, and the appellant was ordered to pay the costs of the first and fifth respondents.