Ross v Elderfield

Case [2006] NSWCA 192


Reported Decision: (2006) DFC 95-338

Court of Appeal


CITATION: Ross v Elderfield [2006] NSWCA 192
HEARING DATE(S): 6 March 2006
 
JUDGMENT DATE: 

4 August 2006
JUDGMENT OF: Handley JA at 1; McColl JA at 54; Hislop J at 55
DECISION: (1) Appeal allowed in part.; (2) Judgment for the plaintiff in the District Court for $133,000 set aside.; (3) In lieu thereof substitute judgment for the plaintiff for $112,403 with effect from 24 March 2005.; (4) Judgment in the District Court otherwise confirmed.; (5) Appellant to pay half the respondent’s costs of the appeal.; (6) Liberty to either party to seek a different order in respect of the costs of the trial or a different order in respect of the costs of the appeal based on the offer of compromise made on 26 November 2004 or any offer of compromise made after the appeal was instituted.; (7) The party seeking such a variation is to serve his or her written submissions within 10 days of the making of these orders and the other party is to file his or her written submissions in reply within a further 10 days. In each case the submissions should be left in the submissions box on level 12.
CATCHWORDS: DE FACTO RELATIONSHIPS – financial contributions – relevance of inheritance – relevance of capital gain – appropriate date for valuation – weight to be given to initial and post acquisition contributions - D
LEGISLATION CITED: Property (Relationships) Act 1984
CASES CITED: Bilous v Mudaliar [2006] NSWCA 38
Davey v Lee (1990) 13 Fam LR 688
Evans v Marmont (1997) 42 NSWLR 70
Kardos v Sarbutt [2006] NSWCA 11
Powell v Supresencia (2003) 30 Fam LR 463
The Macgregor [1943] AC 197
Wallace v Stanford (1995) 37 NSWLR 1
PARTIES: Lynette Ann Ross (Appellant)
John Jacques Elderfield (Respondent)
FILE NUMBER(S): CA 40297 of 2005
COUNSEL: D Flaherty/G Van der Vlag (Appellant)
R Lethbridge SC/M Bateman (Respondent)
SOLICITORS: Cameron Gillingham Boyd (Appellant)
Conditsis & Associates (Respondent)
LOWER COURT JURISDICTION: District Court
LOWER COURT FILE NUMBER(S): DC 3643 of 2003
LOWER COURT JUDICIAL OFFICER: Sidis DCJ
LOWER COURT DATE OF DECISION: 24 March 2005



                          CA 40297 of 2005

                          HANDLEY JA
                          McCOLL JA
                          HISLOP J

                          4 AUGUST 2006
LYNETTE ANN ROSS v JOHN JACQUES ELDERFIELD
CATCHWORDS

DE FACTO RELATIONSHIPS – financial contributions – relevance of inheritance – relevance of capital gain – appropriate date for valuation – weight to be given to initial and post acquisition contributions


FACTS

The parties had been in a de facto relationship between February 1995 and March 2002. The appellant challenged the order for adjustment of interests made by the trial Judge under s 20 of the Property (Relationships) Act 1984 based on the increased value of a house she owned. The appellant’s initial equity in the house was acquired from the proceeds of an inheritance. The Judge found that the parties’ non-financial contributions were approximately equal but the respondent’s direct and indirect financial contributions after the house was acquired were greater than…

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Ross v Elderfield [2006] NSWCA 192
Case
[2006] NSWCA 192
Decision Date

CaseChat Overview and Summary

In *Ross v Elderfield*, the New South Wales Court of Appeal considered an appeal from a District Court judgment concerning the division of property following the breakdown of a de facto relationship. The dispute centred on the financial contributions made by each party, including the relevance of an inheritance received by one party and capital gains realised during the relationship, and the appropriate date for valuing assets.

The Court of Appeal was required to determine the correct approach to assessing financial contributions in the context of a de facto relationship, specifically how to weigh initial contributions against those made post-acquisition, and how to account for inheritances and capital gains when calculating a party's entitlement. A further issue was the appropriate date for valuing the parties' assets for the purpose of property division.

The Court applied principles of property adjustment in de facto relationships, considering the direct and indirect financial contributions of each party. It acknowledged the relevance of an inheritance as a financial contribution, but also considered the subsequent use and impact of that inheritance on the relationship's assets. The Court also addressed the significance of capital gains and the timing of asset valuations, ultimately finding that the District Court's original assessment required adjustment.

The appeal was allowed in part. The District Court judgment for the plaintiff in the sum of $133,000 was set aside and replaced with a judgment for $112,403, effective from 24 March 2005. The District Court judgment was otherwise confirmed. The appellant was ordered to pay half the respondent's costs of the appeal, with liberty for either party to seek a variation of costs orders based on prior offers of compromise.

Orders

Orders of the court

(1) Appeal allowed in part.; (2) Judgment for the plaintiff in the District Court for $133,000 set aside.; (3) In lieu thereof substitute judgment for the plaintiff for $112,403 with effect from 24 March 2005.; (4) Judgment in the District Court otherwise confirmed.; (5) Appellant to pay half the respondent's costs of the appeal.; (6) Liberty to either party to seek a different order in respect of the costs of the trial or a different order in respect of the costs of the appeal based on the offer of compromise made on 26 November 2004 or any offer of compromise made after the appeal was instituted.; (7) The party seeking such a variation is to serve his or her written submissions within 10 days of the making of these orders and the other party is to file his or her written submissions in reply within a further 10 days. In each case the submissions should be left in the submissions box on level 12.

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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