Scanlon v Mcleay

Scanlon and Mcleay were de facto partners who jointly purchased a property at Chermside. Scanlon contributed to the deposit, but the property was registered in Mcleay’s name. Scanlon sought to establish both a resulting trust and a remedial constructive trust over the property, arguing her contributions should reflect an equitable interest. The court was tasked with determining if Scanlon's contributions to the deposit were intended as a gift or if they created a resulting trust in her favour, and whether her financial contributions entitled her to a remedial constructive trust.

The court examined the nature of Scanlon and Mcleay's relationship, their intentions regarding the property purchase, and the circumstances surrounding Scanlon's contributions. It considered whether Scanlon's contributions were intended as a gift or as a security for a beneficial interest. The court also assessed if the unconscionability of Mcleay retaining the property without recognising Scanlon's interest warranted a remedial constructive trust. The court determined that Scanlon's contributions to the deposit were not intended as a gift, thus a resulting trust was applicable to the extent of her contribution. However, the court did not find sufficient evidence to support a remedial constructive trust.

The court declared that Mcleay holds the legal interest in the Chermside property on trust for Scanlon to the extent of $49,000, reflecting Scanlon's contribution to the deposit. The court scheduled further hearings to discuss the form of the orders for performance of the trust and to address the issue of costs. The originating application was dismissed in all other respects.