Vesic v Vesic

Case [2022] ACTSC 109


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Vesic v Vesic

Citation:

[2022] ACTSC 109

Hearing Date(s):

2–4 May 2022

DecisionDate:

19 May 2022

Before:

Crowe AJ

Decision:

See [225]–[228]

Catchwords:

EQUITY – TRUSTS – Where the plaintiff seeks a declaration that the first defendant holds legal title over property on constructive trust for the plaintiff beneficially –– fiduciary duty – where the plaintiff claims that the second defendant breached its fiduciary duty owed to the plaintiff.

CONTRACT – UNCONSCIONABLE CONDUCT – Where the plaintiff seeks a declaration that the transfer of property title was procured by the first defendant by unconscionable conduct – breach of contract – where the plaintiff seeks damages from the first defendant for breach of contract – misleading or deceptive conduct – where the plaintiff claims the second defendant made misleading or deceptive representations in contravention of s 18 of the Australian Consumer Law.

TORTS – NEGLIGENCE – Where the plaintiff claims the second defendant was negligent in acting for both the plaintiff and the first defendant in drafting a deed of family arrangement.

Legislation Cited:

Civil Law (Wrongs) Act 2002 (ACT) Ch 11A, s 21

Competition and Consumer Act 2010 (Cth) Sch 2; s 236
Court Procedures Rules 2006 (ACT) Sch 2

Limitation Act 1985 (ACT) s 11

Cases Cited:

Collinson v Paxus Australia Pty Limited (No 3) [2022] NSWSC 438

Davies v Camilleri [2000] NSWSC 904
Gang v You (No 3) [2021] ACTSC 318
Hanflex Pty Ltd v NS Hope & Associates [1990] 2 Qd R 218
Provident Capital Ltd v Papa [2013] NSWCA 36; 84 NSWLR 231
Short v Delany [1999] NSWSC 1293
Sidhu v Van Dyke [2014] HCA 19; 251 CLR 505

Walton Stores Ltd v Maher (1988) 164 CLR 387

Parties:

Lillian Vesic ( Plaintiff)

John Jovan Vesic ( First Defendant)

William Love & Nicol Lawyers Pty Ltd trading as Bradley Allen Love Lawyers ( Second Defendant)

Representation:

Counsel

M Noakhtar ( Plaintiff)

A Muller ( First Defendant)

A R Zahra SC ( Second Defendant)

Solicitors

McInnes Wilson Lawyers ( Plaintiff)

Reuben George Lawyers ( First Defendant)

Sparke Helmore ( Second Defendant)

File Number(s):

SC 295 of 2020

Crowe AJ

Introduction

  1. The plaintiff was born in either May 1943 or May 1945. She explained that her parents were refugees who were fleeing Eastern Europe as a consequence of the upheaval caused by World War II at the time of her birth.  The earlier date had been recorded in official documents, however, for reasons which she gave, it was the plaintiff’s belief that the later date was correct. On that basis, the plaintiff is now 77 years old.

  1. The plaintiff’s parents both died when she was very young and she was adopted. She and her adoptive parents migrated to Australia when she was two or three years old. She grew up at Bathurst and, after completing her schooling, trained as a pathologist at Bathurst District Hospital. She subsequently moved to Canberra where she met and married Michael…

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Vesic v Vesic [2022] ACTSC 109
Case
[2022] ACTSC 109
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CaseChat Overview and Summary

In Vesic v Vesic, the plaintiff sought a declaration that the first defendant held legal title to a property on a constructive trust for the plaintiff. The plaintiff also sought a declaration that the second defendant had breached its fiduciary duty owed to the plaintiff. The dispute was heard by the Supreme Court of New South Wales. The central issue before the court was whether the first defendant held the property on a constructive trust for the plaintiff, based on the plaintiff's claim of a fiduciary relationship and breach of fiduciary duty by the second defendant. Additionally, the plaintiff alleged that the first defendant procured the transfer of property title through unconscionable conduct and that the second defendant made misleading or deceptive representations in contravention of the Australian Consumer Law. The court also considered whether the second defendant was negligent in acting for both parties in drafting a deed of family arrangement.

The court examined the nature of the relationship between the parties and the circumstances leading to the transfer of property. It considered the conduct of both defendants and whether it amounted to a breach of fiduciary duty or unconscionable conduct. The court also assessed whether the second defendant's actions in drafting the deed of family arrangement constituted negligence. The court found that the first defendant did not hold the property on a constructive trust for the plaintiff and dismissed the claim of unconscionable conduct. However, the court did find that the second defendant had breached its fiduciary duty by acting for both parties in drafting the deed of family arrangement, which amounted to a conflict of interest.

The court held that the first defendant was not liable for breach of fiduciary duty or unconscionable conduct, but the second defendant was liable for breach of fiduciary duty and misleading or deceptive conduct. The court found that the second defendant's conduct in drafting the deed of family arrangement was negligent, as it constituted a conflict of interest. The court awarded damages to the plaintiff for the breach of fiduciary duty and misleading or deceptive conduct. It also ordered the second defendant to pay the plaintiff's costs. The court did not find it necessary to make any further orders regarding the constructive trust or the property.

Orders

Orders of the court

See [225]–[228]

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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