Sheahan v Cooper [1999] FCA 766

Sheahan v Cooper [1999] FCA 766

The agreement made in April 1993 created a trust in Mr Cooper's equitable interest, supported by substantial consideration; the transfer was executed to implement the agreement, and the main purpose was not to defeat creditors. Property was not available in bankruptcy, consideration was sufficient, and neither s 120 nor s 121 rendered the transfer void.

Jurisdiction
Australia
Judgment Date
08 June 1999
Procedural Posture
Bankruptcy Application / Final Judgment
Outcome
Application dismissed
Legal Topics
['transfer of Property' 'constructive Trust' 'consideration in Property Transfer' 'void Transfers Under Bankruptcy Law' 'apportionment of Interests' 'solvency at Transfer' 'sham Transactions']
['bankruptcy' 'trusts'] ['transfer of Property' 'constructive Trust' 'consideration in Property Transfer' 'void Transfers Under Bankruptcy Law' 'apportionment of Interests' 'solvency at Transfer' 'sham Transactions']

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Procedural Posture

Bankruptcy Application / Final Judgment

Legal Issues

  1. 1 ['Whether an agreement to transfer a share of property created a trust in the equitable interest' 'Whether subsequent transfer was a sham under section 120 of the Bankruptcy Act 1966' 'Whether the interest was transferred at all' 'Whether consideration existed for the transfer and whether it was for market value' 'Whether the bankrupt was or was about to become insolvent at the time of transfer of land' 'Whether constructive trust could be created where trustee in bankruptcy asserted title' 'Apportionment of interests under the Baumgartner principle']

Ratio Decidendi

The agreement made in April 1993 created a trust in Mr Cooper's equitable interest, supported by substantial consideration; the transfer was executed to implement the agreement, and the main purpose was not to defeat creditors. Property was not available in bankruptcy, consideration was sufficient, and neither s 120 nor s 121 rendered the transfer void.

Court Disposition

Application dismissed

Orders

  • ['The application is dismissed.' 'Pursuant to O 52 r 14 the time from which the period runs for the institution of an appeal be fixed at 8 June 1999.']