Trustees of the Property of Zoltan Sandor, a Bankrupt v Ramirez

The Trustees of the Property of Zoltan Sandor, a Bankrupt (the Trustees) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales concerning the existence of a resulting trust and the admissibility of evidence. The dispute arose from allegations that the bankrupt, Mr Zoltan Sandor, had engaged in dishonest activity, and the Trustees sought to rely on certain evidence to establish their claim.

The primary legal issues before the Court of Appeal were whether the trial judge erred in finding that a resulting trust did not arise in favour of the Trustees, and whether the evidence admitted at trial, including a prior inconsistent statement, was properly considered. The Court also considered the application of sections 43, 60, and 64 of the *Evidence Act 1995* (NSW) to the admitted evidence, particularly in circumstances where the parties had admittedly engaged in dishonest activity. Furthermore, the Court reviewed the trial judge's discretion regarding costs, specifically whether the bankrupt's dishonest conduct warranted a departure from the usual rule that costs follow the event.

The Court of Appeal, in dismissing the appeal, reasoned that the principles established in *Calverley v Green* (1984) 155 CLR 242 were not applicable to the facts of this case to establish a resulting trust. The Court found no error in the trial judge's assessment of the evidence and the application of the *Evidence Act 1995*. The Court also upheld the trial judge's exercise of discretion concerning costs, acknowledging the bankrupt's dishonest activity.

The appeal was dismissed with costs.