Zhang v Metcalf

The appeal in *Zhang v Metcalf* concerned the beneficial ownership of two properties purchased by de facto partners. The dispute centred on the division of the net sale proceeds of a commercial property, which the parties had purchased as tenants in common in equal shares, and a residential property, which they had acquired as joint tenants. The Court of Appeal of New South Wales was required to determine whether the presumption of a resulting trust applied to the commercial property and, if so, whether it had been rebutted by a contemporaneous deed evidencing the parties' actual intention to hold the property beneficially in equal shares. The court also considered whether a constructive trust arose after the purchase of the residential property and the significance of the parties' conduct thereafter.

The court allowed the appeal in part, specifically concerning ground 4, but dismissed the appeal otherwise and the cross-appeal. The primary judge's orders were varied to adjust the monetary amounts awarded and to extend a deadline for payment. The amended orders declared the plaintiff's entitlement to a sum of $422,709.00 for his share of the net proceeds of sale of the commercial property, and the defendant's entitlement to $4,774.12 for benefits from her advance to the mortgage offset account. Judgment was entered for the plaintiff against the defendant for $443,010.95, which comprised the balance of these awards and interest calculated for three years at 2% per annum. A freezing order was varied to permit the payment of this sum to the plaintiff, with the defendant ordered to take necessary steps to procure the payment by 7 October 2020. The parties were ordered to bear their own costs of the appeal and cross-appeal.