Hans-Egon Bruno Bernhard Metzner & Anor v Jaqueline Rita Metzner [2021] NSWSC 1336

Hans-Egon Bruno Bernhard Metzner & Anor v Jaqueline Rita Metzner [2021] NSWSC 1336

The Plaintiffs paid the whole purchase price, but because the Property was put in their adult daughter's name the presumption of advancement applied. The Court accepted the independent conveyancer's evidence and found that the Plaintiffs had not proved the pleaded representations or promise, had not rebutted the presumption of advancement except to the extent that the Defendant accepted and the evidence showed the Plaintiffs were to be able to use the Property during their lifetimes, and had not established unconscionable conduct. Accordingly, the Defendant did not hold the entire Property on trust for the Plaintiffs, but held it subject to the Plaintiffs' life interest.

Jurisdiction
Australia
Judgment Date
08 October 2021
Procedural Posture
Equity Real Property List Proceeding Concerning Alleged Resulting or Constructive Trust Over Real Property / Principal Judgment After Hearing
Outcome
Plaintiffs failed to establish that the Defendant holds the entire Property on trust for them; the Court found that the Plaintiffs have a life interest and that the Defendant's beneficial ownership is not absolute to that extent.
Legal Topics
['resulting Trusts' 'presumption of Advancement' 'life Estate' 'unconscionable Conduct' 'witness Competence and Use of Affidavits' 'rule in Browne V Dunn']
['equity' 'trusts' 'real Property' 'evidence'] ['resulting Trusts' 'presumption of Advancement' 'life Estate' 'unconscionable Conduct' 'witness Competence and Use of Affidavits' 'rule in Browne V Dunn']

Case Brief

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Procedural Posture

Equity Real Property List Proceeding Concerning Alleged Resulting or Constructive Trust Over Real Property / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether the Defendant made pleaded representations about avoiding interference by Marilyn and stamp duty and made a pleaded promise that the Plaintiffs would remain the true owners of the Property.' 'Whether the Plaintiffs relied on any pleaded representations and whether any such representations were false.' 'Whether a resulting trust arose because the Plaintiffs provided all of the purchase money for the Property.' "Whether the presumption of advancement applied because the Defendant was the Plaintiffs' daughter and whether the Plaintiffs rebutted it." "Whether the Defendant's beneficial interest was subject to a life interest or other right in favour of the Plaintiffs." 'Whether the Defendant engaged in unconscionable conduct.' "Whether the Plaintiffs could use the First Plaintiff's affidavits despite his inability to attend for cross-examination."]

Ratio Decidendi

The Plaintiffs paid the whole purchase price, but because the Property was put in their adult daughter's name the presumption of advancement applied. The Court accepted the independent conveyancer's evidence and found that the Plaintiffs had not proved the pleaded representations or promise, had not rebutted the presumption of advancement except to the extent that the Defendant accepted and the evidence showed the Plaintiffs were to be able to use the Property during their lifetimes, and had not established unconscionable conduct. Accordingly, the Defendant did not hold the entire Property on trust for the Plaintiffs, but held it subject to the Plaintiffs' life interest.

Court Disposition

Plaintiffs failed to establish that the Defendant holds the entire Property on trust for them; the Court found that the Plaintiffs have a life interest and that the Defendant's beneficial ownership is not absolute to that extent.

Orders

  • ['Declaration that the Defendant holds the Property on trust for the Plaintiffs for their lifetimes and then for herself absolutely.' "The Plaintiffs are to prepare a proposed form of orders reflecting the Court's conclusions." 'If the parties are unable to agree on a proposed form of orders, the Court will hear...