Woodhouse v Woodhouse

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Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Woodhouse v Woodhouse [2022] NSWCA 240
Hearing dates: 9 November 2022
Date of orders: 28 November 2022
Decision date: 28 November 2022
Before: Bell CJ at [1];
Meagher JA at [2];
Mitchelmore JA at [124]
Decision:

(1) Appeal allowed.

(2) Set aside orders 1 and 2 made on 4 March 2022.

(3) Judgment for Nicola Woodhouse against Philip Woodhouse on the statement of claim for $250,000 plus interest at the rate of 8% from 1 October 2014.

(4) Judgment for Philip Woodhouse against Nicola Woodhouse on the cross-claim in the sum of $31,337.13 by way of equitable compensation plus interest thereon as claimed.

(5) Set aside orders 1 and 2 made on 25 March 2022.

(6) Order that Philip Woodhouse pay Nicola Woodhouse’s costs of the statement of claim on the ordinary basis.

(7) Order that Nicola Woodhouse pay 20% of Philip Woodhouse’s costs of the cross-claim against her on the ordinary basis.

(8) Order that Philip Woodhouse pay Nicola Woodhouse’s costs of the appeal on the ordinary basis.

Catchwords:

CONTRACT – where alleged oral agreement for loan of $267,000 by mother to adult son – where mother pleaded loan repayable after five years – where mother drew cheques on son’s bank account in favour of herself in purported payment of interest on loan and part repayment of principal – whether primary judge erred in not being persuaded any agreement existed – whether primary judge erred in finding that any loan if made out was repayable on demand so that limitation period commenced to run when moneys advanced and action statute-barred

Legislation Cited:

Limitation Act 1969 (NSW), ss 14(1), 54(2)(a)(ii)

Cases Cited:

Byrnes v Kendle (2011) 243 CLR 353; [2011] HCA 26

Fox v Percy (2003) 214 CLR 118; [2003] HCA 22

Haller v Ayre [2005] 2 Qd R 410; [2005] QCA 224

Ogilvie v Adams [1981] VR 1041

Re Brookers (Aust) Ltd (in liq); Brooker v Pridham (1986) 41 SASR 380

Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52

VL Finance Pty Ltd v Legudi [2003] VSC 57

Category:Principal judgment
Parties: Nicola Mary Woodhouse (Appellant)
Philip George Woodhouse (First Respondent)
David Andrew Woodhouse (Second Respondent)
Lincoln James Kennedy (Third Respondent)
Representation:

Counsel:

Dr C Birch SC with J Mack (Appellant)
A Crossland with M Cobb-Clark (First Respondent)

Solicitors:

Walsh & Blair Lawyers (Appellant)
JDC Lawyers (First Respondent)
Pikes & Verekers (Second and Third Respondents)
File Number(s): 2022/84666
Publication restriction: Nil
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Equity
Citation:

[2022] NSWSC 204

Date of Decision:
04 March 2022
Before:
Ward CJ in Eq
File Number(s):
2018/268002

HEADNOTE

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

The appellant, Nicola Woodhouse, and her husband Garry conducted farming operations on three properties named Lorraine, Colongolong and Cotterills. In April 2010, as part of succession planning involving Nicola, Garry and their…

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Details
Case
[2022] NSWCA 240
Decision Date

CaseChat Overview and Summary

The appeal concerned a dispute between a mother, Nicola Woodhouse, and her adult son, Philip Woodhouse, regarding an alleged oral agreement for a loan of $267,000. The mother claimed the loan was repayable after five years, while the son contended no such agreement existed. The mother had drawn cheques on the son's bank account in her favour, purportedly for interest and principal repayment. The case was heard in the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the primary judge erred in finding that no agreement for a loan existed, and alternatively, whether the primary judge erred in concluding that any loan, if made, was repayable on demand, thereby commencing the limitation period at the time of the advance and rendering the action statute-barred.

The Court of Appeal found that the primary judge had erred in not being persuaded that an agreement for a loan existed. The court reasoned that the evidence, including the mother's actions in drawing cheques on the son's account, supported the existence of a loan. Furthermore, the court determined that the loan was not repayable on demand, but rather was intended to be repaid at a later, unspecified time, meaning the limitation period had not yet commenced. Consequently, the appeal was allowed, the previous orders were set aside, and judgment was entered for the mother for $250,000 plus interest, and for the son on his cross-claim for equitable compensation plus interest. Costs were also awarded on a mixed basis.

Orders

Orders of the court

(1) Appeal allowed.

(2) Set aside orders 1 and 2 made on 4 March 2022.

(3) Judgment for Nicola Woodhouse against Philip Woodhouse on the statement of claim for $250,000 plus interest at the rate of 8% from 1 October 2014.

(4) Judgment for Philip Woodhouse against Nicola Woodhouse on the cross-claim in the sum of $31,337.13 by way of equitable compensation plus interest thereon as claimed.

(5) Set aside orders 1 and 2 made on 25 March 2022.

(6) Order that Philip Woodhouse pay Nicola Woodhouse’s costs of the statement of claim on the ordinary basis.

(7) Order that Nicola Woodhouse pay 20% of Philip Woodhouse’s costs of the cross-claim against her on the ordinary basis.

(8) Order that Philip Woodhouse pay Nicola Woodhouse’s costs of the appeal on the ordinary basis.

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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