Turner v O’Bryan-Turner [2021] NSWSC 5

Supreme Court New South Wales

Medium Neutral Citation: Turner v O'Bryan-Turner [2021] NSWSC 5 Hearing dates: 4-16 June 2020 Date of orders: 12 January 2021 Decision date: 12 January 2021 Jurisdiction: Equity Before: Ward CJ in Eq Decision: In the 2019 Proceeding, I make the following orders: 1. Declare that the First and Second Promissory Notes (as defined in these reasons) were void and of no effect. 2. Declare that, by reason of the First and Second Promissory Notes being void and of no effect, Owen John Turner owes no moneys to Allawah Pastoral Pty Ltd pursuant to the First or Second Loan Agreements (as defined in these reasons) or at all. 3. Declare that the unregistered First and Second Mortgages (as defined in these reasons) are inoperative and do not secure any moneys loaned by Owen John Turner to Allawah Pastoral Pty Ltd. 4. Order that the First and Second Mortgages (as defined in these reasons) be delivered up to the solicitors for the plaintiff in the 2019 Proceeding for cancellation. 5. Further and in the alternative, declare that the entry by Owen John Turner into the transactions comprised of, and the execution by Owen John Turner of, the 2010 Transaction Documents (as defined in these reasons) and 2015 Transaction Documents (as defined in these reasons), were obtained by undue influence, to the knowledge of the first defendant to the 2019 Proceeding and, through him, the second defendant to the 2019 Proceeding; and that the retention of the benefit of, or insistence upon, the said documents and transactions by the defendants to the 2019 Proceeding would amount to unconscionable conduct. 6. Order that the 2010 Transaction Documents and 2015 Transaction Documents be set aside. 7. Direct the parties to file brief written submissions as to costs by 5 February 2021 with a view to dealing with the issue of costs on the papers, if possible. In the 2017 Proceeding, I make the following orders: 1. Direct that the parties to provide brief written submissions as to the extent of the charge to be imposed over the Woolharinga, Nellyvale and Sunrise properties (as defined in these reasons) in accordance with these reasons, along with any other submissions in relation to relief including as to costs, and proposed short minutes of order, by 5 February 2021, with a view to determining those issues on the papers, if possible. 2. Otherwise, dismiss the proceeding. Catchwords: EQUITY — Fiduciary duties — Breach — Rule in Barnes v Addy — Knowledge requirements — Where mother acted in breach of fiduciary duty — Receipts and assistance by children EQUITY — Vitiating factors — Undue influence — Unconscionable dealing — Where transactions undertaken by son — Mental incapacity of father AGENCY — Power of attorney — Effectiveness of — As part of transaction — Where transactions unauthorised by power — Spouse acting as enduring attorney Legislation Cited: Bills of Exchange Act 1909 (Cth), ss 5, 89(1), 90, 95 Civil Procedure Act 2005 (NSW), ss 56, 57, 58 Competition and Consumer Act 2010 (Cth), Sch 2 – Australian Consumer Law Conveyancing Act 1919 (NSW), s 37A Duties Act 1997 (NSW), s 274 NSW Trustee and Guardian Act 2009 (NSW), s 41, 64, 65, 66, 67, 68, 79 and 115 Powers of Attorney Act 2003 (NSW), ss 9, 10, 11, 12, 13, 19, 36 Real Property Act 1900 (NSW), s 12D Succession Act 2006 (NSW) Cases Cited: A v N [2012] NSWSC 354 Aequitas Ltd v Sparad No 100 Ltd (formerly Australian European Finance Corp Ltd) [2001] NSWSC 14; (2001) 19 ACLC 1006 Allcard v Skinner (1887) 36 Ch D 145 Allied Pastoral Holdings Pty Ltd v Federal Commissioner of Taxation [1983] 1 NSWLR 1 Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 265 CLR 1; [2018] HCA 43 Anderson v Anderson [2016] NSWSC 1204 Aon Risk Services Australia Ltd v Australian National University (2009) 239 CLR 175; [2009] HCA 27 Baden Delvaux & Lecuit v Société Générale pour Favoriser le Dévelopment du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Balck v Pilcher (1909) 25 TLR 497 Bank of Credit and Commerce International SA v Aboody [1990] 1 QB 923; [1992] 4 All ER 955 Barkley v Brown [2009] NSWSC 76 Barnes v Addy (1874) LR 9 Ch App 244 Beach Petroleum NL v Abbott Tout Russell Kennedy (1999) 48 NSWLR 1; [1999] NSWCA 408 Bell Group Ltd (in liq) v Westpac Banking Corp (No 9) (2008) 39 WAR 1; [2008] WASC 239 Belmont Finance Ltd v Williams Furniture (No 1) [1979] Ch 250 Bird v Bird [2013] NSWCA 262 Blomley v Ryan (1956) 99 CLR 362; [1956] HCA 81 Boardman v Phipps [1967] 2 AC 46 Bridgewater v Leahy (1998) 194 CLR 457; [1998] HCA 66 Browne v Dunn (1893) 6 R 67 Cadwallader v Bajco Pty Ltd [2002] NSWCA 328 Celermajer Holdings Pty Ltd v Kopas [2011] NSWSC 40 Comgroup Supplies Pty Ltd v Products for Industry Pty Ltd [2016] QCA 088 Commercial Bank of Australia Limited v Amadio (1983) 151 CLR 447; [1983] HCA 14 Crouch v The Credit Foncier of England, Ltd (1873) LR 8 QB 374 Day v Perisher Blue Pty Ltd (2005) 62 NSWLR 731; [2005] NSWCA 110 Dimitrovski v Australian Executor Trustees Limited [2014] NSWCA 68 Emu Brewery Mezzanine Ltd (in liq) v Australian Securities and Investments Commission (2006) 32 WAR 204; [2006] WASCA 105 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 George v Webb [2011] NSWSC 1608 Gore v Octahim Wise Ltd [1995] 2 Qd R 242 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Harstedt Pty Ltd v Tomanek (2018) 55 VR 158; [2018] VSCA 84 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Hedley-Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 Hospital Products Limited v United Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Howard v Federal Commissioner of Taxation (2014) 253 CLR 83; [2014] HCA 21 Huguenin v Baseley (1807) 14 Ves Jun Supp 273 In the Matter of Vicad Pty Ltd; Pottie v Dunkley [2011] NSWSC 166; (2011) 82 ACSR 541 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; [2010] HCA 19 Johnson v Buttress (1936) 56 CLR 113; [1936] HCA 41 Johnson v Smith [2010] NSWCA 306 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Kakavas v Crown Melbourne Ltd (2013) 250 CLR 392; [2013] HCA 25 Kalls Enterprises Pty Ltd (in liq) v Baloglow [2007] NSWCA 191; (2007) 63 ACSR 557 Louth v Diprose (1992) 175 CLR 621; [1992] HCA 61 Macquarie Developments Pty Ltd v Forrester [2005] NSWSC 674 Moratic Pty Ltd v Gordon [2007] NSWSC 5; (2007) 13 BPR 24,713 Morrison v Coast Finance Ltd (1965) 55 DLR (2d) 710 Mulherin v Quinn Villages Pty Ltd [2007] QSC 231 National Australia Bank Limited v Rowe [2018] WASC 330 NCR Australia Pty Ltd v Credit Connection Pty Ltd (in liquidation) [2004] NSWSC 1 Nicholson v Morgan (No 3) [2013] WASC 110; (2013) 8 ASTLR 277 Nocton v Lord Ashburton [1914] AC 932 Perochinsky v Kirschner [2013] NSWSC 400 Poosathurai v Kannappa Chettiar (1919) LR 47 Re Dawson (1966) 84 WN (Pt 1) (NSW) 399 Riz v Perpetual Trustee Australia Ltd [2007] NSWSC 1153; (2007) ANZ ConvR 615 Rosebanner Pty Ltd v Energy Australia [2009] NSWSC 43 Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603; [2007] NSWCA 65 Stivactas v Michaletos (No 2) [1994] ANZ ConvR 252 Stock Motor Ploughs Ltd v Forsyth (1932) 48 CLR 128; [1932] HCA 40 Szozda v Szozda [2010] NSWSC 804 Taheri v Vitek (2014) 87 NSWLR 403; [2014] NSWCA 209 Tobin v Broadbent (1947) 75 CLR 378; [1947] HCA 46 Tulloch (deceased) v Braybon (No 2) [2010] NSWSC 650 Turner v O'Bryan-Turner [2018] NSWSC 1140 Turner v O'Bryan-Turner [2019] NSWSC 1340 Turner v O'Bryan-Turner [2019] NSWSC 258 Turner v Windever [2003] NSWSC 1147 Urane v Whipper [2001] NSWSC 796 Varma v Varma [2010] NSWSC 786 V-Flow Pty Ltd v Holyoake Industries (Vic) Pty Ltd [2013] FCAFC 16; (2013) 296 ALR 418 Vidler v Sallaway (1862) 1 SCR (NSW) 246 Warman International Ltd v Dwyer (1995) 182 CLR 544 at 561; [1995] HCA 18 Watson v Foxman (1995) 49 NSWLR 315 Westpac Banking Corporation v The Bell Group Ltd (in liq) (No 3) (2012) 44 WAR 1; [2012] WASCA 157 Whereat v Duff [1972] 2 NSWLR 147 Williamson v Rider [1963] 1 QB 89; [1962] 2 All ER 268 Winefield v Clarke [2008] NSWSC 882 Wu v Ling [2016] NSWCA 322 Texts Cited: Halsbury's Laws of Australia (online) Mason, Sir Anthony, "The Impact of Equitable Doctrine on the Law of Contract" (1998) 27 Anglo-American Law Review 1 Meagher, R P, J D Heydon and M J Leeming, Meagher, Gummow and Lehane's Equity: Doctrines & Remedies (4th ed, 2002, LexisNexis) Ridge, P, "Participatory Liability for Breach of Trust or Fiduciary Duty" in J Glister and P Ridge (eds), Fault Lines in Equity (2012, Hart) 119 Robson, K, Riley's Annotated Bills of Exchange Act and Cheques and Payment Orders Act (4th ed, 1994, LawBook Co) Category: Principal judgment Parties: 2017/00080121 Proceeding Owen John turner by his tutor Nicholas John Turner (First Plaintiff) Allawah Pastoral Pty Ltd (Second Plaintiff) Nicholas John Turner (Third Plaintiff) Angelena May O'Bryan in her capacity as the Executrix of the Estate of Wendy Joan O'Bryan-Turner (First Defendant) David John Turner (Second Defendant) Karl John Turner (Third Defendant) Registrar-General, Land and Property Information (Fourth Defendant)