Campbell v van der Velde as trustee of the bankrupt estate of Marilyn Anne Rowan, in the matter of Rowan [2019] FCA 1871

FEDERAL COURT OF AUSTRALIA

Campbell v van der Velde as trustee of the bankrupt estate of Marilyn Anne Rowan, in the matter of Rowan [2019] FCA 1871 File number(s): NSD 1743 of 2016

Judge(s): FARRELL J

Date of judgment: 14 November 2019

Catchwords: BANKRUPTCY AND INSOLVENCY – where bankrupt registered as the holder of a 98/100 share in land when sequestration order made – where claim of equitable interest in bankrupt's holding brought by holders of remaining 2/100 shares – whether the 98/100 interest vested in trustee pursuant to s 58(1) of the Bankruptcy Act 1966 (Cth) EQUITY – where first applicant and bankrupt entered into a joint venture agreement to purchase property and develop it by building a house on it with a view to made a profit by sale – where bankrupt paid deposits for purchase, stamp duty and loan application fees – whether first applicant repaid the bankrupt her deposit – where applicants' overall contributions to the purchase, development or construction of the property far outweighed those of the bankrupt – where first and third applicants entered into occupation of property after house built on it and eventually took property off the market – whether joint venture failed without attributable blame – claim by applicants that a trust has arisen in proportion to parties' respective contributions, including as to purchase price, construction and development and repayments of loans including interest – whether occupation fee should be allowed – whether relief should be denied because of an attempt to avoid the revenue TRUSTS AND TRUSTEES – constructive trusts – whether a constructive trust should be imposed – whether parties' intention was such as to create a common intention constructive trust and the parties acted to their detriment on the basis of that common understanding – whether, upon failure of the joint venture, a constructive trust should be imposed to extent of contributions having regard to the principles in Muschinski v Dodds [1985] HCA 78; 160 CLR 583 and Baumgartner v Baumgartner [1987] HCA 59; 164 CLR 137