Yardley v Favell Gordon (Aust) Pty Ltd

Valerie Yardley, the plaintiff, sought leave to lodge a second caveat against a property owned by Favell Gordon (Aust) Pty Ltd, the first defendant, following the lapse of her first caveat. The first defendant was owned and operated by David Favell, the plaintiff's former de facto partner. The plaintiff argued that a constructive trust arose in respect of the property, charging it with the respective contributions of herself and Mr Favell to that property. The court had to determine whether there was a serious question to be tried regarding the plaintiff's claim and if the balance of convenience favoured granting leave to lodge a second caveat. The court found that there was a serious question to be tried regarding the plaintiff's claim, as it was arguable that the first defendant was the alter ego of Mr Favell, and he was effectively the sole beneficiary of the Hepburn Way property. The court also found that the balance of convenience favoured granting leave to lodge a second caveat, as the plaintiff had not unduly delayed in seeking to enforce her claimed right, and the first defendant had not demonstrated sufficient urgency in selling the property to outweigh the plaintiff's interest in having the matter determined. The court granted leave to the plaintiff to lodge a second caveat, subject to her providing an undertaking as to damages.