Bao v Li [2022] NSWSC 1335

Bao v Li [2022] NSWSC 1335

The Court preferred the evidence of Mr Tao and Mr Bao to Ms Li and found that Ms Li did not receive the acquisition and development funds as gifts. The parties objectively intended that Ms Li would hold both properties in name only on express trust for Mr Tao. The pleaded statutory formalities defence failed because the acts relied on were unequivocally referable to the trust agreements, and the Foreign Acquisitions and Takeovers Act 1975 (Cth) did not invalidate the arrangements. The Co-operation Agreement was binding as between Mr Tao and Mr Bao despite the word "draft" and entitled Mr Bao to 50% of the net profit of the North Ryde Property after expenses and reimbursement of...

Jurisdiction
Australia
Judgment Date
30 September 2022
Procedural Posture
Equity Proceeding Concerning Beneficial Ownership of Land, Express Trusts and Enforcement of a Co Operation Agreement / Principal Judgment After Hearing; Final Orders to Be Settled by Short Minutes
Outcome
Mr Bao and Mr Tao succeeded in their claims. Ms Li holds both the North Ryde Property and the St Ives Property on trust for Mr Tao. Mr Bao is entitled to 50% of the net profit of the North Ryde Property after expenses, including mortgage, have been paid and Mr Tao and Mr Bao have been reimbursed their financial...
Legal Topics
['express Trusts Over Land' 'statute of Frauds and Requirement of Writing' 'part Performance' 'foreign Acquisitions Approval' 'contract Formation' 'subject to Contract' 'chattels and Better Right to Possession']
['equity' 'trusts' 'contracts' 'property Law'] ['express Trusts Over Land' 'statute of Frauds and Requirement of Writing' 'part Performance' 'foreign Acquisitions Approval' 'contract Formation' 'subject to Contract' 'chattels and Better Right to Possession']

Case Brief

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Procedural Posture

Equity Proceeding Concerning Beneficial Ownership of Land, Express Trusts and Enforcement of a Co Operation Agreement / Principal Judgment After Hearing; Final Orders to Be Settled by Short Minutes

Legal Issues

  1. 1 ['Whether Ms Li held the North Ryde Property and the St Ives Property on express trust for Mr Tao or whether ownership should be determined by contributions.' 'Whether s 23C of the Conveyancing Act 1919 (NSW) prevented enforcement of any trust because of want of writing.' 'Whether acts of part performance prevented reliance on statutory formalities.' "Whether the Foreign Acquisitions and Takeovers Act 1975 (Cth) impeded orders recognising Mr Tao's beneficial ownership." 'Whether the Co-operation Agreement was binding and enforceable despite being headed "Draft Cooperation Agreement".' "Whether Ms Li was a party to the Co-operation Agreement or signed as Mr Tao's agent." 'Whether Mr Tao had a better right to possession of furniture and other chattels held by Ms Li.']

Ratio Decidendi

The Court preferred the evidence of Mr Tao and Mr Bao to Ms Li and found that Ms Li did not receive the acquisition and development funds as gifts. The parties objectively intended that Ms Li would hold both properties in name only on express trust for Mr Tao. The pleaded statutory formalities defence failed because the acts relied on were unequivocally referable to the trust agreements, and the Foreign Acquisitions and Takeovers Act 1975 (Cth) did not invalidate the arrangements. The Co-operation Agreement was binding as between Mr Tao and Mr Bao despite the word "draft" and entitled Mr Bao to 50% of the net profit of the North Ryde Property after expenses and reimbursement of...

Court Disposition

Mr Bao and Mr Tao succeeded in their claims. Ms Li holds both the North Ryde Property and the St Ives Property on trust for Mr Tao. Mr Bao is entitled to 50% of the net profit of the North Ryde Property after expenses, including mortgage, have been paid and Mr Tao and Mr Bao have been reimbursed their financial...

Orders

  • ['The parties are to confer and provide agreed short minutes of order reflecting this judgment and appropriate costs orders to my Associate within 7 days of the publication of this judgment.' 'Should the parties not be able to agree, the parties are to provide their competing short minutes together with submissions...