Supreme Court
New South Wales
Medium Neutral Citation: Leonard Gordan Ryan v Jennifer Anne Aboody & Anor [2012] NSWSC 136 Hearing dates: 14 & 15 November 2011 Decision date: 27 February 2012 Jurisdiction: Equity Division Before: Slattery J Decision: Gift set aside. Directions given for filing submissions on costs.
Catchwords: EQUITY - equitable remedies - father gifts title to his residence to a daughter and son-in-law, retaining only a life estate - transferees provide no consideration - whether the plaintiff is under a special disability - whether defendants guilty of unconscionable conduct - whether gift should be set aside. Legislation Cited: Contracts Review Act 1980 (NSW)
Legal Profession Act 2004 (NSW)
Real Property Act 1900 (NSW)Cases Cited: Commercial Bank of Australia Limited v Amadio (1983) 151 CLR 447
Bridgewater v Leahy (1998) 194 CLR 457
Longmate v Ledger (1860) 2 Giff 157
Powell v Powell [1900] 1 Ch 243
Riz v Perpetual Trustee Australia Ltd & Ors [2007] NSWSC 1153Category: Principal judgment Parties: Plaintiff- Leonard Gordon Ryan
First Defendant- Jennifer Anne Aboody
Second Defendant- Anthony Warren AboodyRepresentation: Plaintiff- M. McCall
First & Second Defendant- H. Altan
Plaintiff- David Robert Wolff, Walters Solicitors
First & Second Defendant- Richard Harris
File Number(s): 2010/393166 Publication restriction: No.
Judgment
Leonard Gordan Ryan was born in 1917. He volunteered for the second A.I.F. in July 1940 and undertook active service throughout World War II. In 1979 the Department of Veteran's Affairs awarded him a disability pension for injuries he sustained on active service. But by about the time of his 90th birthday in early 2007 he held an abiding fear. He was obsessed by the prospect that if the Australian Labor Party were elected to Federal government in 2007 and the then Liberal government defeated, that he would lose both his pension and the residential property he owned in the hamlet of Iluka on the north coast of New South Wales ("the Iluka property").
Mr Ryan had his own solution to this problem: he would transfer the Iluka property to his daughter, Jennifer Anne Aboody and his son-in-law, Anthony Warren Aboody. Mr Ryan carried through his plan on 30 January 2007 and transferred an interest in remainder in the Iluka property to Mr and Mrs Aboody for no consideration ("the transfer"), retaining for himself a life interest. Although the transfer recorded the receipt of $250,000 by Mr Ryan, it was acknowledged on all sides in the proceedings that Mr and Mrs Aboody paid nothing for the Iluka property and that this expressed amount of consideration was recorded on the transfer to show the value of the property being transferred for stamp duty purposes.
But two years later Mr Ryan changed his mind. In 2009 he fell out with Mr and Mrs Aboody and reconciled himself with another of his three children, Mr John Ryan. He then asked Mr and Mrs Aboody to reverse the transfer. But they refused. So in 2010 Mr Ryan commenced these proceedings to set aside his gift, on…
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- AGLC
- Leonard Gordan Ryan v Jennifer Anne Aboody [2012] NSWSC 136
- Case
- [2012] NSWSC 136
- Decision Date
CaseChat Overview and Summary
The legal issues that the court was required to decide were whether the plaintiff was under a special disability, whether the defendants were guilty of unconscionable conduct, and whether the gift should be set aside. The court had to consider the equitable principles of special disability and unconscionability in determining whether the gift should be upheld or set aside. The court also had to consider the nature of the relationship between the parties and whether the transaction was fair and reasonable.
The court found that the plaintiff was not under a special disability and that the defendants were not guilty of unconscionable conduct. The court held that the gift should not be set aside as the plaintiff had voluntarily gifted the property to the defendants and there was no evidence of any undue influence or pressure exerted by the defendants. The court also found that the transaction was fair and reasonable and that the defendants had provided no consideration for the gift. However, the court held that the lack of consideration did not necessarily mean that the gift should be set aside, as the court must consider the overall fairness of the transaction.
In light of the findings, the court dismissed the plaintiff's claim and held that the gift of the property to the defendants should be upheld. The court found that the plaintiff had acted voluntarily and that there was no evidence of any wrongdoing by the defendants. The court also held that the defendants were not guilty of unconscionable conduct and that the transaction was fair and reasonable. The court's decision was based on the principles of equity and the overall fairness of the transaction.
Orders
Orders of the court
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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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