Szeto v Situ

Case [2017] NSWCA 136


Court of Appeal


Supreme Court


New South Wales

  • Summary available
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Medium Neutral Citation: Szeto v Situ [2017] NSWCA 136
Hearing dates:16 May 2017
Date of orders: 15 June 2017
Decision date: 15 June 2017
Before: Bathurst CJ at [1]; Macfarlan JA at [35]; Leeming JA at [36]
Decision:

1. Appeal allowed.

 

2. Set aside the orders made by the primary judge.

 

3. Order a retrial of the proceedings before a judge nominated by the Chief Judge of the Equity Division.

 

4. Order the respondent pay the appellant’s costs of the appeal and have a certificate under the Suitors’ Fund Act 1951 (NSW) if eligible.

 5. Costs of the proceedings in the Court below abide the outcome of any new trial.
Catchwords: EQUITY – residential property purchased in name of respondent using loan moneys acquired on the application of appellant and respondent siblings – appellant alleged oral agreement that property would be held beneficially in equal shares – entitlement asserted on the basis of an unconscionable denial of interest under Muschinski v Dodds (1986) 160 CLR 583 and/or on the basis of a resulting trust under Calverley v Green (1984) 155 CLR 242 – absence of direct, corroborative evidence – whether primary judge erred in declaring that the appellant had no right, title or interest in the property – whether primary judge erred in preferring the evidence of the respondent and his wife over that of the appellant – whether primary judge erred in giving significance to differences in the interest failing to have regard to documentary evidence that appellant contributed to purchase price – whether primary judge should have accepted that a letter prepared by respondent’s solicitor constituted an “admission” of appellant’s interest
Legislation Cited: Suitors’ Fund Act 1951 (NSW)
Cases Cited: Fox v Percy (2003) 214 CLR 118; [2003] HCA 22
State Rail Authority of NSW v Earthline Constructions Pty Ltd (in liq) (1999) 73 ALJR 306; [1999] HCA 3
Category:Principal judgment
Parties: Livy Szeto (Appellant)
Liming Situ (Respondent)
Representation:

Counsel:
I Tam / T Yeh (Appellant)
R Cavanagh SC / P Cutler (Respondent)

  Solicitors:
Pope & Spinks (Appellant)
Equiton Solicitors (Respondent)
File Number(s):2016/183676
Publication restriction:Nil
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Equity
Citation:
[2016] NSWSC 646
Date of Decision:
24 May 2016
Before:
Lindsay J
File Number(s):
2014/00285214

HEADNOTE

[This headnote is not to be read as part of the judgment]

The appellant claimed an equitable half-share in a residential property registered solely in the respondent’s name (her brother). The property was purchased with the benefit of a bank loan which was made on the application of both the appellant and respondent. The appellant claimed there was an agreement between them that the property would be owned by both siblings in equal shares and that she paid both the deposit and the shortfall of funds between the balance of the purchase price and that provided under the bank loan. The respondent denied there…

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Szeto v Situ [2017] NSWCA 136
Case
[2017] NSWCA 136
Decision Date

CaseChat Overview and Summary

The appeal in *Szeto v Situ* concerned a dispute between siblings over beneficial ownership of a residential property. The property was purchased in the name of the respondent, Mr. Situ, with loan moneys obtained through the applications of both the appellant, Ms. Szeto, and the respondent. Ms. Szeto alleged an oral agreement that the property would be held beneficially in equal shares. She asserted her entitlement on the basis of an unconscionable denial of interest, referencing principles from *Muschinski v Dodds*, and alternatively, on the basis of a resulting trust, as discussed in *Calverley v Green*. The primary judge had declared that Ms. Szeto had no right, title, or interest in the property.

The Court of Appeal was required to determine whether the primary judge erred in several respects. These included whether the primary judge wrongly preferred the evidence of the respondent and his wife over that of the appellant, and whether the primary judge erred in attaching significance to perceived differences in interest without adequately considering documentary evidence suggesting the appellant contributed to the purchase price. Furthermore, the court had to consider whether the primary judge should have accepted a letter prepared by the respondent's solicitor as an admission of the appellant's interest.

The Court of Appeal found that the primary judge had erred in his assessment of the evidence and in applying the relevant legal principles. The court concluded that a retrial was necessary to properly determine the appellant's claim. The appeal was allowed, the orders of the primary judge were set aside, and the proceedings were remitted for a new trial before a judge nominated by the Chief Judge of the Equity Division. The respondent was ordered to pay the appellant's costs of the appeal, with a potential certificate under the Suitors’ Fund Act 1951 (NSW), and the costs of the proceedings in the court below were to abide the outcome of the new trial.

Orders

Orders of the court

1. Appeal allowed.

2. Set aside the orders made by the primary judge.

3. Order a retrial of the proceedings before a judge nominated by the Chief Judge of the Equity Division.

4. Order the respondent pay the appellant’s costs of the appeal and have a certificate under the Suitors’ Fund Act 1951 (NSW) if eligible.

5. Costs of the proceedings in the Court below abide the outcome of any new trial.

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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