Shang v Zhang [2007] NSWSC 856

New South Wales Supreme Court

CITATION : Shang v Zhang [2007] NSWSC 856

HEARING DATE(S) : 20, 21 and 22 June 2007

JUDGMENT DATE : 8 August 2007

JURISDICTION : Equity Division

JUDGMENT OF : Young CJ in Eq

DECISION : First subject property to be held on trust for and to vest in plaintiff. Second subject property to be sold, plaintiff to receive 20.5% of proceeds, remainder to be held on trust for first defendant. Judgment against first defendant for $570,000 plus interest.

CATCHWORDS : EQUITY [96]- Resulting trusts- When arising- Purchase of land- Contributions to purchase price not corresponding with legal interests created by transfer of title- Plaintiff father provides money so that second defendant son can purchase properties- Properties purchased in name of first defendant- First defendant retains properties after son ends their relationship- Plaintiff beneficially entitled to whole of first property and to part of second property. EQUITY [97]- Resulting trusts- When arising- Loan for designated purpose- Failure of purpose- Plaintiff invests in business carried on by first and second defendants- Business sold by first defendant and proceeds distributed to third defendant allegedly in repayment of debt- Debt not proven- Plaintiff beneficially entitled to his share of proceeds of sale.

LEGISLATION CITED : Conveyancing Act 1919, s 66G Supreme Court Act 1970, s 56

Alexander v Perpetual Trustees WA Ltd (2004) 216 CLR 109 Barnes v Addy (1874) LR 9 Ch App 244 CASES CITED : Hayim v Citibank NA [1987] AC 730 Lidden v Composite Buyers Ltd (1996) 67 FCR 560 Ramage v Waclaw (1988) 12 NSWLR 84

Xian Xi Shang (P) PARTIES : Rong Hui Zhang (D1) Jin Shang (D2) Dai Ying Lu (D3)