New Zealand Case Law: Decisions & Judgments

Topic

Common intention constructive trust

Legal area

Court

7 Aug 2023

CHAMBERS v THE NEW ZEALAND GUARDIAN TRUST COMPANY LIMITED [2023] NZHC 2084 [7 August 2023]

Citation

[2023] NZHC 2084
Court

High Court

On the facts the claimant proved she rendered significant services, there was an express promise (supported by contemporaneous accountant's file note and family evidence) and a sufficient nexus between services and promise; deceased failed to make the promised testamentary provision; accordingly the TPA claim succeeds and, alternatively, a common intention constructive trust is established. Appropriate relief in principle vests deceased's 40% shareholdings in CJL and CJEL in the claimant but subject to an income provision for the widow equivalent to 10% of CJL annual net profits for her lifet…
19 Jul 2022

SIDDIQUI v SIDDIQUI [2022] NZCA 324

Citation

[2022] NZCA 324
Court

Court of Appeal

On the proven facts the house was held by the son and his wife on an institutional/common intention constructive trust for the parents; no contractual guarantee fee was payable because the provision of collateral was found to be a familial gift absent agreement; monetary adjustments were allowed in favour of the son/wife and against the parents only to the extent proved, the bathroom claim was reduced for lack of documentary proof, and interest on adjustments is to be calculated as simple statutory interest under the Interest on Money Claims Act 2016 rather than compound interest.
17 Nov 2021

ALI v WEST VILLAGE CAPITAL PARTNERS LTD & OR [2021] NZHC 3090

Citation

[2021] NZHC 3090
Court

High Court

On the summary threshold the applicant established a reasonably arguable case that an institutional common intention constructive trust may operate over the four Union Green units because the 2015 subscription agreement and conditional sale and purchase agreements created a reasonable proprietary expectation and equitable interest; material factual issues (including whether the sunset clause operated and whether Echinus complied with strict payment/notice requirements, and the priority effect of a mortgagee sale under s 103 LTA) remain unresolved and require trial; accordingly the caveat shou…
8 Sept 2021

MILLS v LABOYRIE & ORS AS TRUSTEES OF THE GALWAY TRUST [2021] NZCA 450 [8 September 2021]

Citation

[2021] NZCA 450
Court

Court of Appeal

The Court of Appeal affirmed the High Court: respondents made contributions to the purchase through retention of inheritance and guarantees; the parties retained a common intention that the Galway Trust be the beneficial owner despite title in Stephen's name; requirements for recognition of an institutional constructive trust were met and it would be unconscionable to allow the estate to claim both legal and beneficial ownership; Pallant v Morgan was unnecessary and inapplicable to domestic family circumstances here; counterclaims for unjust enrichment and trustee indemnity failed; costs awar…
1 Mar 2019

ALMOND v READ [2019] NZCA 26

Citation

[2019] NZCA 26
Court

Court of Appeal

The Court upheld the High Court's findings that, on the evidential record, the parties had an express common intention that beneficial ownership of the Property be held in proportion to financial contributions and that an institutional constructive trust arose by operation of law enforceable against the registered proprietor; the appellant's attacks on credibility and alternative caregiving characterisation failed, the appellant breached fiduciary duties in misapplying her mother's funds under an enduring power, the property shares were quantified as found below, and the appeal was dismissed…
7 Mar 2017

WEI ZHANG v LIBING ZHANG [2017] NZHC 361

Citation

[2017] NZHC 361
Court

High Court

The court found there was sufficient evidence of contribution and a proposed 50/50 agreement to constitute a reasonably arguable equitable interest; because the matter involved factual disputes unsuitable for final determination in the summary caveat process, it was not appropriate to order removal and therefore the caveat was sustained and costs awarded to the applicant.
23 Sept 2016

FECK v PAROHINOG [2016] NZHC 2246

Citation

[2016] NZHC 2246
Court

High Court

On the balance of probabilities the defendant accepted the transaction on the basis that any legal interest taken was to be held on trust for the plaintiff; the 31 July email, the solicitor's 6 August file note, the draft deed and the parties' subsequent conduct (transfer, financing structure, payments and occupation) establish a common intention constructive trust; therefore the defendant's 50% share of the net proceeds is held on trust for the plaintiff.
20 Mar 2014

HARVEY v IJAN BEVERIDGE CA521/2013 [2014] NZCA 72

Citation

(2014) 15 NZCPR 205
Court

Court of Appeal

Because there was no perfected gift, no express written trust complying with s25(2) Property Law Act 2007, and no evidence of the necessary contribution, detriment or unconscionability to found a common intention constructive trust, the respondent had no defence; the executrix lawfully implements the will and is not acting unconscionably by denying an unperfected lifetime intention.
28 Feb 2014

RIDGE and RIDGE v PARORE and LLOYD [2014] NZHC 318

Citation

[2014] NZHC 318
Court

High Court

The plaintiffs failed to establish the essential element of a clear and unequivocal common intention that the Parore Trust would hold 50% of the SBA shares on trust for the Ridge Trust; the 2007 restructuring was intended to separate ownership of assets between the trusts and any equal sharing was to be achieved by treating the parties as equal beneficiaries, not by altering legal title, therefore the constructive trust claim fails.
8 Jul 2013

HARVEY v BEVERIDGE [2013] NZHC 1718

Citation

[2013] NZAR 1364
Court

High Court

Summary judgment was dismissed because the executor failed to show the defendant had no arguable defence; there were triable issues whether an unequivocal common intention constructive trust arose from the deceased's words and conduct and whether that created a caveatable institutional equitable interest, so the matter must proceed to full hearing.