Zheng v Zhang [2020] NSWSC 904

Zheng v Zhang [2020] NSWSC 904

From cl II of the Property Distribution Agreement it could be inferred that, from 4 March 2017, the defendant was to hold the Castle Hill Property on trust for the plaintiff. The later payments made by the defendant from the settlement moneys supported the existence of an agreement to pay the proceeds of sale to the plaintiff. The defendant failed to pay the residual settlement moneys of $285,858.21, which constituted both breach of trust and breach of the Property Distribution Agreement. Following default judgment, the plaintiff established her entitlement to damages, interest and costs.

Jurisdiction
Australia
Judgment Date
15 July 2020
Procedural Posture
Equity Proceedings Concerning Alleged Failure to Comply With a Property Distribution Agreement and Proceeds of Sale of Real Property / Notice of Motion After Default Judgment for Assessment of Damages and Other Relief; Heard in the Defendant's Absence
Outcome
Relief granted to the plaintiff after default judgment; declarations, payment of residual proceeds, interest and costs ordered.
Legal Topics
['default Judgment' 'assessment of Damages' 'express Trust' 'breach of Trust' 'breach of Contract' 'equitable Compensation' 'interest Up to Judgment' 'sale Proceeds of Real Property']
['equity' 'civil Procedure' 'trusts' 'contract'] ['default Judgment' 'assessment of Damages' 'express Trust' 'breach of Trust' 'breach of Contract' 'equitable Compensation' 'interest Up to Judgment' 'sale Proceeds of Real Property']

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Procedural Posture

Equity Proceedings Concerning Alleged Failure to Comply With a Property Distribution Agreement and Proceeds of Sale of Real Property / Notice of Motion After Default Judgment for Assessment of Damages and Other Relief; Heard in the Defendant's Absence

Legal Issues

  1. 1 ['Whether the Property Distribution Agreement created a trust over the Castle Hill Property in favour of the plaintiff.' 'Whether the defendant held the residual proceeds of sale of the Castle Hill Property on trust for the plaintiff.' "Whether the defendant's failure to pay the residual settlement moneys to the plaintiff constituted breach of trust and breach of the Property Distribution Agreement." 'Whether the plaintiff had established the amount of damages, interest and costs following default judgment.']

Ratio Decidendi

From cl II of the Property Distribution Agreement it could be inferred that, from 4 March 2017, the defendant was to hold the Castle Hill Property on trust for the plaintiff. The later payments made by the defendant from the settlement moneys supported the existence of an agreement to pay the proceeds of sale to the plaintiff. The defendant failed to pay the residual settlement moneys of $285,858.21, which constituted both breach of trust and breach of the Property Distribution Agreement. Following default judgment, the plaintiff established her entitlement to damages, interest and costs.

Court Disposition

Relief granted to the plaintiff after default judgment; declarations, payment of residual proceeds, interest and costs ordered.

Orders

  • ['Declare that the defendant held the property located at 7 Nottingham Avenue, Castle Hill, New South Wales, folio identifier Lot 45 in Deposited Plan 244895, the Castle Hill Property, on trust for the plaintiff from 4 March 2017 to 12 August 2019.' 'Declare that from 4 August 2019 the defendant held the residual...