Simonson Properties Pty Ltd v Hardy

Simonson Properties Pty Ltd was the plaintiff in a case against Hardy, the defendant, where the dispute centred on the nature and extent of property interests held by Hardy in relation to shares in a family company. The case was heard in the Supreme Court of New South Wales. The plaintiff sought to establish whether Hardy held any shares in the company on a trust for the plaintiff and whether the purported assignment of a chose in action to Hardy was valid.

The court had to determine two primary legal issues. Firstly, whether a trust arose on the basis of custom and practice within the family business, requiring a clear expression of intention to create such a trust. Secondly, whether the statutory provision preventing the assignment of an equitable interest was satisfied, considering the evidence of the purported assignment and whether it complied with the requirements for an immediate disposition.

The court examined the evidence and found that there was no clear expression of intention to create a trust based on the custom and practice within the family business. Consequently, no trust was established. Regarding the assignment, the court held that there was insufficient evidence to support the claim that an assignment of a chose in action occurred. Furthermore, the statutory provision preventing the assignment of an equitable interest was not satisfied, as the writing requirements were not met, and there was no clear intention to make an immediate disposition. The court concluded that the physical property in question remained the property of the State.

The court's decision resulted in an order that Hardy held no shares in the company on trust for Simonson Properties Pty Ltd and that the purported assignment of a chose in action was invalid. Consequently, Simonson Properties Pty Ltd was not entitled to any relief against Hardy concerning the shares or the chose in action.