Darmanin v Cowan [2010] NSWSC 1118

New South Wales Supreme Court

CITATION : Darmanin v Cowan [2010] NSWSC 1118

HEARING DATE(S) : 28 and 29 June 2010

JUDGMENT DATE : 1 October 2010

JURISDICTION : Equity

JUDGMENT OF : Ward J

DECISION : Plaintiff's claim dismissed

CATCHWORDS : EQUITY - unconscionability - undue influence - cottage built on defendants' property at plaintiff's expense - relationship between plaintiff and defendants broke down - plaintiff required to leave defendants' property - whether unconscionable for defendants not to reimburse plaintiff for costs of construction of cottage - whether agreement or arrangement between defendants and plaintiff procured by way of unconscientious conduct or undue influence - HELD - no benefit unconscionably retained by defendants in circumstances - defendants did not act unconscionably or exercise undue influence in their dealings with plaintiff - CONTRACTS - whether intention to create legal relations in a domestic or social context - whether relief under Contracts Review Act - HELD - no intention to create legal relations - plaintiff's claim dismissed

LEGISLATION CITED : Contracts Review Act 1980 (NSW) Evidence Act 1995 (NSW)

Agricultural and Rural Finance Pty Ltd & Anor v John Edward Atkinson & Ors [2010] NSWSC 635 Allcard v Skinner (1887) 36 Ch D 145; [1886-90] All ER Rep 90 Allied Pastoral Holdings Pty Ltd v FCT [1983] 1 NSWLR 1; (1983) 44 ALR 607 Attorney-General (NSW) v World Best Holdings Ltd [2005] NSWCA 261; (2005) 63 NSWLR 557 Australasian Provincial Assurance Co Ltd v Coroneo (1938) 38 SR (NSW) 700 Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199 Australian Broadcasting Corporation v XIVth Commonwealth Games Limited (1988) 18 NSWLR 540 Australian Competition and Consumer Commission v C G Berbatis Holdings Pty Ltd (2003) 214 CLR 51 Australian Competition and Consumer Commission v Oceana Commercial Pty Ltd [2004] FCAFC 174 Balfour v Balfour [1919] 2 KB 571 Ball-Guymer v Livantes (1990) 102 FLR 327 Bank of Credit and Commerce International SA v Aboody [1990] 1 QB 23 Barnes v Addy [1874] 9 Ch App. 244 Barrier Wharfs Limited v W Scott Fell & Co Limited (1908) 5 CLR 647 Baulkham Hills Private Hospital Pty Limited v G R Securities Pty Limited (1986) 40 NSWLR 622 Baumgartner v Baumgartner (1987) 164 CLR 137 Bennett v Horgan (unreported, NSWSC, 3 June 1994) Blomley v Ryan (1956) 99 CLR 362 Bovaird v Frost [2009] NSWSC 337 Brandi v Mingot (1976) 12 ALR 551 Bridgewater v Leahy [1998] HCA 66; 194 CLR 457; 158 ALR 66; 72 ALJR 1525 Browne v Dunn (1893) 6 R 67 (HL) Brusewitz v Brown [1923] NZLR 1106 Buckpitt v Oates [1968] 1 All ER 1145 Bulstrode v Trimble [1970] VR 840 Chalmers v Pardoe [1963] 1 WLR 677 Commercial Bank of Australia Ltd v Amadio [1983] HCA 14; (1983) 151 CLR 447 Commissioner of State Revenue v Uniqema Pty Ltd (2004) 9 VR 523; 2004 ATC 4579; (2004) 56 ATR 19; [2004] VSCA 82 Commonwealth of Australia v McLean (1996) 41 NSWLR 389; (unreported, NSWCA, 31 December 1996) Coward v Motor Insurer's Bureau [1963] 1 QB 259 Crosthwaite v Elizabeth City Corporation (1989) 51 SASR 105 Crowe v Commonwealth Bank of Australia [2005] NSWCA 41 Elders Rural Finance Ltd v Smith (1996) 41 NSWLR 296 Elkofairi v Permanent Trustee Co Ltd [2002] NSWCA 413 Eon Metals NL v Commissioner of State Taxation (WA) (1991) 91 ATC 4841 Ermogenous v Greek Orthodox Community [2002] HCA 8; (2002) 209 CLR 95 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89 Film Bars Pty Limited v Pacific Film Laboratories Pty Limited (1979) 1 BPR 9251 Ford by his Tutor Beatrice Ann Watkinson v Perpetual Trustees Victoria Limited [2009] NSWCA 186; (2009) 75 NSWLR 42 Frances Madge Johnson by her tutor Karen Elisabeth Smith v Andrew Robert Stuart Johnson [2009] NSWSC 503 Frederick John Jones v Jennifer May Moss [2007] NSWSC 969 Georgeski v Owners Corporation SP49833 [2004] NSWSC 1096; (2004) 62 NSWLR 534 Giumelli v Giumelli [1999] HCA 10; 196 CLR 101; 73 ALJR 547 Goldsworthy v Brickell [1987] Ch 378 Graham Evans Pty Ltd v Stencraft Pty Ltd [1999] FCA 290 Hartigan v International Society for Krishna Consciousness Incorporated [2002] NSWSC 810 Heaton v Luczka (unreported, NSWCCA, 3 March 1998) Henderson v Miles (No 2) [2005] NSWSC 867 Hill v Hill [2005] NSWSC 863 HML v R [2008] HCA 16; (2008) 235 CLR 334; (2008) 245 ALR 204 Ho v Powell [2001] NSWCA 168; (2001) 51 NSWLR 572 Holland v Hodgson (1872) LR 7 CP 328 Huguenin v Baseley (1807) 14 Vesey Jnr 273; 33 ER 526 Janson v Janson [2007] NSWSC 1344 Jiwira v PIBA [2000] NSWSC 1094 Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298 CASES CITED : Jones v Padavatton [1968] EWCA Civ 4; [1969] 2 All ER 616 Katsilis v Broken Hill Pty Co Ltd (1977) 18 ALR 181 Knox v Knox (16 December 1994, unreported, Young J) Kowalczuk v Accom Finance Pty Ltd (2008) 252 ALR 55 Kriezis v Kriezis [2004] NSWSC 167 Lactos Fresh Pty Ltd v Finishing Services Pty Ltd (No 2) [2006] FCA 748 Leigh v Taylor [1902] AC 157 Lopwell Pty Ltd v Clarke and Ors [2009] NSWCA 165 Louth v Diprose [1992] HCA 61; (1992) 175 CLR 621 Maher v Honeysett and Maher Electrical Contractors Pty Ltd [2007] NSWSC 12 Makita (Australia) Pty Ltd v Sprowles [2001] NSWCA 305; 52 NSWLR 705 Malsbury v Malsbury (1979) 1 BPR 9550 May v Ceedive Pty Limited [2006] NSWCA 369 Maynard v Moseley (1676) 3 Swan 651 McKay v McKay [2008] NSWSC 177 Mighell and Anor v Gargoura and Ors [2009] NSWSC 248 Mizzi v Reliance Financial Services Pty Ltd and Ors [2007] NSWSC 37 Morris v Morris (1982) 1 NSWLR 61 Muschinski v Dodds (1985) 160 CLR 583 N H Dunn Pty Limited v L M Ericsson Pty Limited (1979) 2 BPR 9241 National Dairies WA Limited v Commissioner of State Revenue (WA) [1999] WASCA 152 Nattrass v Nattrass [1999] WASC 77 O'Rorke v Bolingbroke (1877) 2 App Cas 814, Owen and Gutch v Homan (1853) 4 HLC Palinkas v Palinkas [2009] NSWSC 92 Palumberi v Palumberi (1986) NSW ConvR 55-287 Parker v Clark [1960] 1 All ER 93 Pasternacki and Solka-Pasternacki (as Executors of the Estate of the Late Mary Nagy) v Correy [2000] NSWCA 333 Pennie v Pennie [2010] NSWSC 565 Perpetual Trustee Company Limited v Albert and Rose Khoshaba [2006] NSWCA 41 Perpetual Trustees Vic Ltd v Bodiroza [2009] NSWSC 861 Precision Plastics Pty Ltd v Demir (1975) 132 CLR 362 Quek v Beggs (1990) 5 BPR 11,761 (NSW SC) R T & Y E Falls Investments Pty Limited v The State of New South Wales & ors [2001] NSWSC 1027 Raffaele v Raffaele [1962] WAR 29 Re Gonin (deceased) [1979] Ch 16 Reid v Smith (1905) 3 CLR 656 Riz v Perpetual Trustee Australia Ltd (2008) NSW ConvR 56-198; [2007] NSWSC 1153 Royal Bank of Scotland v Etridge (AP) [2001] UKHL 44 Schaefer v Schumann [1972] AC 572 Scheps v Cobb [2005] NSWSC 455 Seymour v Australian Broadcasting Commission (1977) 19 NSWLR 219 Shearer v Manly-Warringah District Rugby League Football Club (unreported, NSWSC, 7 November 1989) Sirtes v Pryor [2005] NSWSC 1082 Spina v Permanent Custodians Ltd (2009) 14 BPR 26,923 Talevski and Anor v Talevski and Anor [2007] NSWSC 945 Tanner v Tanner [1975] 1 WLR 1346 Taylor v Streicher [2007] NSWSC 1006 Teen Ranch Pty Ltd v Brown (1995) 87 IR 308 Thomas v Hollier (1984) 53 ALR 39 Todd v Nicol [1957] SASR 72 Tory v Tory [2007] NSWSC 1078 Unsted v Unsted (1947) 47 SR (NSW) 495; (1947) 64 WN 183 Wakeling v Ripley (1951) 51 SR (NSW) 183 Watkins v Combes (1922) 30 CLR 180 West v AGC (Advances) Ltd (1986) 5 NSWLR 610 West v Mead [2003] NSWSC 161; (2003) 13 BPR 24,431; Whereat v Duff (1973) 1 ALR 363; (1973) 47 ALJR 540