Parsons and Parsons v McBain [2001] FCA 376

FEDERAL COURT OF AUSTRALIA

Parsons and Parsons v McBain [2001] FCA 376

BANKRUPTCY – constructive trust – transfer of property to beneficiary – whether void as against trustee in bankruptcy EQUITY – equity of exoneration – how defeated TRUSTS – "common intention constructive trust" – whether trustee in bankruptcy takes subject to trust – time at which trust arises Abigail v Lapin [1934] AC 491 cited Aguilar v Aguilar (1820) 5 Madd 414; 56 ER 953 cited Banque Financičre de la Cité v Parc (Battersea) Ltd [1999] 1 AC 221 cited Berry (a bankrupt), Re [1978] 2 NZLR 373 cited Caldwell v Ridge Wholesale Acceptance Corporation (Australia) Limited (1993) 6 BPR 13,539 cited Duncan, Fox, & Co v North and South Wales Bank (1880) 6 App Cas 1 cited Gee v Liddell [1913] 2 Ch 62 discussed Giumelli v Giumelli (1999) 196 CLR 101 followed Holland, Re; Ex parte Official Trustee in Bankruptcy (1985) 5 FCR 165 cited Huntington v Huntington (1702) 2 Vern 438; 23 ER 881 cited International Refugee Organization v Maryland Drydock Co, 179 F2d 284 (4th Cir, 1950) cited Kiely, In re (1857) Ir Ch Rep 394 cited Morgan v Marquis (1853) 9 Ex 145; 156 ER 62 cited Muschinski v Dodds (1985) 160 CLR 583 followed Osborn, Re; Ex parte Trustee of the Property of Osborn (A bankrupt) v Osborn (1989) 25 FCR 547 overruled Paget v Paget [1898] 1 Ch 470 cited Parteriche v Powlet (1742) 2 Atk 383; 26 ER 632 cited Schebsman, In re; Ex parte The Official receiver v Cargo Superintendents (London) Ltd and Schebsman [1944] Ch 83 Secretary, Department of Social Security v Agnew (2000) 96 FCR 357 explained Sharpe (A Bankrupt), In re; Ex parte Trustee of the Bankrupt's Property v The Bankrupt [1980] 1 WLR 219 cited Shropshire Union Railways and Canal Company v The Queen (1875) LR 7 HL 496 cited Taite v Austin (1714) 1 P Wms 284; 24 ER 382 cited Ashburner, Principles of Equity (2nd ed, 1933) Bogert, Trusts and Trustees (Revised 2nd ed, 1978) Scott, Law of Trusts (4th ed, 1989) Fisher & Lightwood's Law of Mortgage (Aust. Ed., 1995) Halsbury's Laws of England (4th ed, 1979)