Segal v Barel (No 2)

In *Segal v Barel (No 2)*, the dispute concerned the sale and distribution of proceeds from co-owned land. The appeal was brought by the appellant, Segal, against the respondent, Barel, following orders made by the Equity Division of the Supreme Court of New South Wales on 2 November 2012. The primary issue on appeal was the appropriate orders to be made regarding the appointment of trustees for the sale of the property and the distribution of the sale proceeds, including the costs of the proceedings.

The court was required to determine whether the initial orders made by the Equity Division were appropriate, particularly concerning the appointment of trustees for the sale of the co-owned property and the subsequent distribution of the proceeds. This involved considering the application of section 66G of the *Conveyancing Act 1919* (NSW) for the appointment of trustees for sale and the principles governing the allocation of sale proceeds and costs in such proceedings. The court also had to consider the appropriate wording for orders relating to the termination of co-ownership and the payment of legal costs.

The Court of Appeal allowed the appeal, setting aside the orders of 2 November 2012. It ordered the appointment of new trustees to hold the property on a statutory trust for sale. The court varied the original orders to reflect that the co-ownership was to be terminated upon the sale of the property. Crucially, the court ordered that the costs of both parties of the Equity Division proceedings were to be paid out of the proceeds of sale before distribution. The proceeds were then to be divided equally between the appellant and respondent, with specific directions for the payment of outstanding loans and account balances from each party's share. The respondent was ordered to pay the appellant's costs of the appeal.