Donnelly v Johnson [1999] FCA 1662

Donnelly v Johnson [1999] FCA 1662

Mr Johnson held a vendor's lien for $90,000 arising from the 1992 transfer of his interest in the property to Ms Dawson, which was not paid. The sum paid on transfer in 1997 combined with the value of the lien equalled or exceeded the market value of the property. Therefore, Mr Johnson is to be regarded as having...

Source-derived case information.

Parties
Applicant: Max Christopher Donnelly; Respondent: Mark Anthony Johnson
Jurisdiction
Australia
Judgment Date
29 November 1999
Procedural Posture
Bankruptcy Application / Judgment Following Final Hearing
Outcome
Application dismissed; parties to make submissions on form of orders and costs.
Legal Topics
Transfer of Real Property by Bankrupt, Vendor's Lien, Constructive Trust, Resulting Trust, Consideration in Bankruptcy, Contract for Sale of Property, De Facto Relationships
Bankruptcy Property Transfer of Real Property by Bankrupt Vendor's Lien Constructive Trust Resulting Trust Consideration in Bankruptcy Contract for Sale of Property +1 more

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Parties

Max Christopher Donnelly

Applicant

Mark Anthony Johnson

Respondent

Procedural Posture

Bankruptcy Application / Judgment Following Final Hearing

Legal Issues

  1. 1 Whether the transfer by the bankrupt of real property is void as against the trustee under s 120, s 121 or s 122 of the Bankruptcy Act 1966 (Cth)
  2. 2 Whether a contract for sale of the property for full market value was entered into
  3. 3 Whether a resulting or constructive trust arose over the property

Ratio Decidendi

Mr Johnson held a vendor's lien for $90,000 arising from the 1992 transfer of his interest in the property to Ms Dawson, which was not paid. The sum paid on transfer in 1997 combined with the value of the lien equalled or exceeded the market value of the property. Therefore, Mr Johnson is to be regarded as having given consideration not less than market value. The transfer is not void under s 120 or s 122, and no order for payment of the balance is warranted; the application is dismissed.

Court Disposition

Application dismissed; parties to make submissions on form of orders and costs.

Orders

  • Applicant to file and serve, not later than 6 December 1999, short minutes of the orders he submits should be made in light of the published reasons.