Memduh Cihan and Mehmet Cihan trading as trustees of the Cihan Family Trust ABN 43 973 762 406 v Cihan Family Pty Limited [2023] NSWSC 1289

Supreme Court New South Wales

Medium Neutral Citation: Memduh Cihan and Mehmet Cihan trading as trustees of the Cihan Family Trust ABN 43 973 762 406 v Cihan Family Pty Limited [2023] NSWSC 1289 Hearing dates: 13 October 2023 Date of orders: 30 October 2023 Decision date: 30 October 2023 Jurisdiction: Equity Before: McGrath J Decision: See [148] Catchwords: EQUITY — Real Property Act 1900 (NSW) – exceptions to indefeasibility of title — fraud and unconscionable conduct — transfer of 27.38% interest in real property from family trust to self-managed superannuation fund (Transfer) by a father at the direction of his adult son with the overwhelming benefit of the Transfer flowing away from the father to adult son and his family — in circumstances where the father is unable to read or understand the English language and was reliant on adult son as to the prudence of the Transfer — application of principles outlined in Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 — lack of specificity as to precise act of adult son which would satisfy finding of fraud — HELD — fraud not established — special disability of the father established — no appearance on behalf of the defendant to rebut equitable presumption of invalidity — HELD — plaintiff has established unconscionable conduct — Transfer set aside CIVIL PROCEDURE — pleadings — fraud – requirement for specific pleadings and particulars — HELD — plaintiff's fraud claim rejected as not pleaded or particularised or otherwise included too late to afford defendant procedural fairness Legislation Cited: Evidence Act 1995 (NSW) Real Property Act 1900 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Almona Pty Ltd v Parklea Corporation Pty Ltd [2019] NSWSC 1868 Anderson v Anderson [2016] NSWSC 1204 Assets Co Ltd v Mere Roihi [1905] AC 176 Bahr v Nicolay (No 2) (1988) 164 CLR 604; [1988] HCA 16 Bank of New South Wales v Rogers (1941) 65 CLR 42 Banque Commerciale SA v Akhil Holdings Ltd (1990) 169 CLR 279; [1990] HCA 11 Breskvar v Wall (1971) 126 CLR 376 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Butler v Fairclough (1917) 23 CLR 78; [1917] HCA 9 Cassegrain v Cassegrain (2015) 254 CLR 425; [2015] HCA 2 Cihan v Cihan [2022] NSWSC 538 Cihan v Cihan (No 2) [2022] NSWSC 538 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447; [1983] HCA 14 Hoho Property Pty Ltd v Bass Finance No 37 Pty Ltd [2023] NSWSC 411 Inche Noriag v Shaik Allie Bin Omar [1929] AC 127 Krakowski & Anor v Eurolynx Properties Ltd & Anor (1995) 183 CLR 563 Logue v Shoalhaven Shire Council [1979] 1 NSWLR 537 Loke Yew v Port Swettenham Rubber Co Ltd [1913] AC 491 Louth v Diprose (1992) 175 CLR 621; [1992] HCA 61 Mangano v Bullen [2020] NSWCA 283 Nadinic v Drinkwater (2017) 94 NSWLR 518; [2017] NSWCA 114 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd [1992] HCA 66; (1992) 67 ALJR 170 Nitopi v Nitopi [2023] NSWCA 162 Rejfek v McElroy (1965) 112 CLR 517 Schultz v Corwill Properties Pty Ltd [1969] 2 NSWR 576 Sgro v Australian Associated Motor Insurers Ltd (2015) 91 NSWLR 325; [2015] NSWCA 262 SJ Berry Pty Ltd v McEntee [2022] SASCA 133 Stuart v Kingston (1923) 32 CLR 309 Stubbings v Jams 2 Pty Ltd [2022] HCA 6 Thorne v Kennedy (2017) 263 CLR 85; [2017] HCA 49 Waimiha Sawmilling Co Ltd (in liq) v Waione Timber Co Ltd [1926] AC 101 Wentworth v Rogers (No 5) (1986) 6 NSWLR 534 Young v Hoger (2001) Q Conv R 54-548; [2000] QSC 455 Texts Cited: Edgeworth B, Butt's Land Law (Thomson Reuters, 7th ed, 2017) Category: Principal judgment Parties: Memduh Cihan and Mehmet Cihan as trustees of the Cihan Family Trust (ABN 43 973 762 406) (Plaintiff) Cihan Family Pty Limited (ACN 150 063 166) (Defendant) Representation: Counsel: G George (Plaintiff)