Barkley v Barkley Brown [2009] NSWSC 76

Barkley v Barkley Brown [2009] NSWSC 76

The defendant, Mrs Barkley-Brown, owed and breached fiduciary duties as agent for Mrs Farrell, was required to account for sums withdrawn from Mrs Farrell's bank account. The relationship created a presumption of undue influence; the defendant failed to rebut the presumption regarding the withdrawals being gifts. Most sums so withdrawn are to be treated as owing to the estate and deducted from the defendant's share in the estate. Parallel findings apply to Mr Barkley for sums attributed to him.

Jurisdiction
Australia
Judgment Date
24 February 2009
Procedural Posture
Equity Account and Inquiry / Principal Judgment After Hearing
Outcome
Defendant held liable to account; further account declined; consequential relief ordered (accounting by deductions from estate shares, interest payable).
Legal Topics
['fiduciary Duties' 'account of Profits' 'undue Influence' 'mental Capacity' 'estate Administration']
['equity'] ['fiduciary Duties' 'account of Profits' 'undue Influence' 'mental Capacity' 'estate Administration']

Case Brief

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Procedural Posture

Equity Account and Inquiry / Principal Judgment After Hearing

Legal Issues

  1. 1 ["Whether the defendant, Victoria Barkley-Brown, should be ordered to account to the deceased's estate for withdrawals from the deceased's bank account." 'Whether the defendant owed fiduciary duties to the deceased.' 'Whether the amounts withdrawn by the defendant were gifts or loans.' 'Whether the relationship between the defendant and the deceased gives rise to a presumption of undue influence, and if that presumption is rebutted.' 'How the sums withdrawn should be treated in the administration and distribution of the estate.']

Ratio Decidendi

The defendant, Mrs Barkley-Brown, owed and breached fiduciary duties as agent for Mrs Farrell, was required to account for sums withdrawn from Mrs Farrell's bank account. The relationship created a presumption of undue influence; the defendant failed to rebut the presumption regarding the withdrawals being gifts. Most sums so withdrawn are to be treated as owing to the estate and deducted from the defendant's share in the estate. Parallel findings apply to Mr Barkley for sums attributed to him.

Court Disposition

Defendant held liable to account; further account declined; consequential relief ordered (accounting by deductions from estate shares, interest payable).

Orders

  • ['Mrs Barkley-Brown and Mr Barkley are to account to the estate for the benefits received or to be deducted from further distribution to them, plus interest.' 'The parties are to confer and provide proposed orders to implement this mechanism, including finalization of amounts payable to the estate.']