Rydzewski v Rydzewski

Case [2024] NSWSC 802


Supreme Court


New South Wales

  • Amendment notes
Medium Neutral Citation: Rydzewski v Rydzewski [2024] NSWSC 802
Hearing dates: 30 October 2023–10 November 2023
Date of orders: 01 July 2024
Decision date: 01 July 2024
Jurisdiction:Equity - Succession & Probate List - Probate
Before: Richmond J
Decision:

See [324]

Catchwords:

CONTRACTS — parties — capacity — gift of real property

CONTRACTS — unjust contracts — Contracts Review Act 1980 (NSW) — unjust

EQUITY — unconscionable conduct — special disability or disadvantage — whether unconscientious advantage taken

EQUITY — trusts and trustees — constructive trusts — imperfect gifts

EQUITY — undue influence — relationships giving rise to presumption of undue influence

Legislation Cited:

Administrative Decisions Review Act 1997 (NSW)

Contracts Review Act 1980 (NSW)

Duties Act 1997 (NSW)

Evidence Act 1995 (NSW`)

Powers of Attorney Act 2003 (NSW)

Cases Cited:

Aboody v Ryan [2012] NSWCA 395

Banks v Goodfellow (1870) LR 5 QB 549

Blomley v Ryan (1956) 99 CLR 362

Boyse v Rossborough (1857) 10 ER 1192; (1857) 6 HL Cas 2

Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34

Brown v Barber [2020] WASC 84

Collins by her next friend Poletti v May [2000] WASC 29

Commercial Bank of Australia v Amadio (1983) 151 CLR 447; [1983] HCA 14

Crouch v Hooper (1852) 16 Beav 182; 51 ER 747

DVB v NSW Trustee and Guardian [2021] NSWCATAD 105

Effem Foods Pty Ltd v Lake Cumbeline Pty Ltd (1999) 161 ALR 599; [1999] HCA 15

Et-China.com International Holdings Ltd v Cheung (2021) 388 ALR 128; [2021] NSWCA 24

Gibbons v Wright (1954) 91 CLR 423; [1954] HCA 17

Hanna v Raoul [2018] NSWCA 201

In the matter of Kit Digital Australia Pty Ltd (in liq) [2014] NSWSC 1547

Ip v Chiang [2021] NSWSC 822

Johnson v Buttress (1936) 56 CLR 113

Johnson v Smith [2010] NSWSC 306

Kakavas v Crown Melbourne Ltd (2013) 250 CLR 392; [2013] HCA 25

Louth v Diprose [1992] HCA 61; (1992) 175 CLR 621

Mentink v Olsen [2020] NSWCA 182

Nitopi v Nitopi [2022] NSWCA 162

Schwanke v Alexakis; Camilleri v Alexakis [2024] NSWCA 118

Scott v Scott [2012] NSWSC 1541

Smilevska v Smilevska [2015] NSWC 1794 at [28]

Stubbings v Jams No 2 Pty Ltd [2022] HCA 6; (2022) 276 CLR 1

Symons v Williams (1875) 1 VLR (E) 199

Szozda v Szozda [2010] NSWSC 804

Thorne v Kennedy (2017) 263 CLR 85; [2017] HCA 49

Tomanovic Multitown Pty Limited v Interlux Projects Pty Limited [2021] NSWSC 190

Turner v O’Bryan-Turner [2021] NSWSC 5

Turner v Windever [2003] NSWSC 1147

Union Fidelity Trustee Co of Australia Ltd v Gibson [1971] VR 573

Watson v Foxman (1995) 49 NSWLR 315

Winefield v Clarke [2008] NSWSC 882

Texts Cited:

Sir Frederick Jordan, Chapters on Equity in New South Wales (6th ed, 1947)

Category:Principal judgment
Parties: Stanislaus Rydzewski (Cross-claimant)
Janina Rydzewski (Second Cross-defendant)
Krystina Rydzewski (Third Cross-defendant)
Daniel McKinnon as the administrator of the…

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Rydzewski v Rydzewski [2024] NSWSC 802
Case
[2024] NSWSC 802
Decision Date

CaseChat Overview and Summary

In Rydzewski v Rydzewski, the dispute arose from a gift of real property between family members. The case was heard in the Supreme Court of New South Wales. The court was tasked with determining whether a gift of a property from the mother to the daughter was validly made, and if the mother had the capacity to do so. The case also examined whether the gift was unjust under the Contracts Review Act 1980 (NSW) and whether the daughter had engaged in unconscionable conduct by taking unconscientious advantage of the mother's special disability or disadvantage.

The central legal issues before the court were whether the mother had the capacity to gift the property, if the gift was unjust, and if the daughter had engaged in unconscionable conduct. Additionally, the court needed to determine if a constructive trust should be imposed due to an imperfect gift and whether undue influence was exerted by the daughter on the mother. The court considered the relationship between the parties and whether it gave rise to a presumption of undue influence.

The court found that the mother had the capacity to make the gift, as there was no evidence of incapacity. It was determined that the gift was not unjust under the Contracts Review Act 1980 (NSW). However, the court found that the daughter had engaged in unconscionable conduct by taking advantage of the mother's special disability, which was her advanced age and cognitive decline. Consequently, the court imposed a constructive trust on the property in favour of the mother. The court also found that the relationship between the parties gave rise to a presumption of undue influence, which was not rebutted by the daughter.

The final orders of the court were that the daughter hold the property on constructive trust for the mother and that she pay reasonable compensation to the mother for the unconscientious advantage taken.

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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