Shang v Zhang [2007] NSWSC 856

Shang v Zhang [2007] NSWSC 856

The funds used for Unit 1707 and for proven contributions to Crick Street came from the plaintiff and were not shown to have been gifted to Jin Shang or the first defendant. Jin held the funds for the plaintiff, and the first defendant knew the money came from the plaintiff. Unit 1707 was therefore held on resulting trust for the plaintiff, and the plaintiff proved a 20.5% beneficial interest in Crick Street. The Teamfair money and the separate $250,000 payment were also the plaintiff's funds and were not properly retained by the first defendant, so judgment was entered against her for $570,000 plus interest.

Jurisdiction
Australia
Judgment Date
08 August 2007
Procedural Posture
Equity Proceedings Concerning Resulting Trusts and Recovery of Property / Final Judgment After Hearing
Outcome
Plaintiff substantially succeeded; resulting trust and sale orders were to be made, with judgment against the first defendant for $570,000 plus interest, and the matter stood over for short minutes.
Legal Topics
['resulting Trusts' 'purchase of Land' "beneficiary's Standing to Sue Third Party" 'tracing Trust Property' 'trustees for Sale Under S 66 G of the Conveyancing Act 1919' 'failure of Designated Purpose']
['equity' 'trusts' 'property Law'] ['resulting Trusts' 'purchase of Land' "beneficiary's Standing to Sue Third Party" 'tracing Trust Property' 'trustees for Sale Under S 66 G of the Conveyancing Act 1919' 'failure of Designated Purpose']

Case Brief

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Procedural Posture

Equity Proceedings Concerning Resulting Trusts and Recovery of Property / Final Judgment After Hearing

Legal Issues

  1. 1 ['Whether Unit 1707, 348 Sussex Street, Sydney was held on resulting trust for the plaintiff.' 'Whether the plaintiff was beneficially entitled to an interest in No 3 Crick Street, Chatswood and to proceeds of its sale.' "Whether money invested in Teamfair Australia Pty Ltd from the plaintiff's funds was recoverable by the plaintiff after sale of the business." "Whether the $250,000 paid to reduce the first defendant's Macquarie Bank loan was repayable to the plaintiff." 'Whether the plaintiff, as beneficiary under a trust of which Jin Shang was trustee, could sue the first defendant in special circumstances.']

Ratio Decidendi

The funds used for Unit 1707 and for proven contributions to Crick Street came from the plaintiff and were not shown to have been gifted to Jin Shang or the first defendant. Jin held the funds for the plaintiff, and the first defendant knew the money came from the plaintiff. Unit 1707 was therefore held on resulting trust for the plaintiff, and the plaintiff proved a 20.5% beneficial interest in Crick Street. The Teamfair money and the separate $250,000 payment were also the plaintiff's funds and were not properly retained by the first defendant, so judgment was entered against her for $570,000 plus interest.

Court Disposition

Plaintiff substantially succeeded; resulting trust and sale orders were to be made, with judgment against the first defendant for $570,000 plus interest, and the matter stood over for short minutes.

Orders

  • ['Unit 1707, 348 Sussex Street, Sydney is to be held on trust for the plaintiff and vested in the plaintiff.' 'No 3 Crick Street, Chatswood is to be vested in trustees for sale and sold, with 20.5% of the proceeds paid to the plaintiff and the balance held on trust for the first defendant pending further order of...