A v N & anor [2012] NSWSC 354

Supreme Court New South Wales

Medium Neutral Citation: A v N & anor [2012] NSWSC 354 Hearing dates: 13-17, 20-24 February 2012 Decision date: 13 April 2012 Jurisdiction: Equity Division Before: Ward J Decision: Judgment for plaintiff. Orders to be made for performance by first defendant of obligations under Deed of Settlement and Release. Catchwords: CAPACITY - presumption of sanity - test of capacity is 'issue specific' - relevant issue was whether there was capacity to enter into March Deed - HELD - onus of proof to displace presumption not satisfied on balance of probabilities - EVIDENCE - whether Court bound to accept expert evidence where the expert is not called for and hence challenged in cross-examination - HELD - general principle that Court is not bound to accept such evidence although it may be given more weight depending on the balance of the evidence before the Court - uncontradicted evidence is still be to assessed in light of all other lay and expert evidence - UNCONSCIONABLE CONDUCT - two allegations of unconscionable conduct - first, that plaintiff took advantage of her position vis-Ã -vis the second defendant to induce him to enter the deed - second, that plaintiff took advantage of first defendant's concern that she would be denied access to the second defendant to induce her to enter the deed - HELD - unconscionable conduct not established in relation to either allegation - UNDUE INFLUENCE - no presumption of influence between husband and wife - evidence of increasing dependence of second defendant on plaintiff giving rise to a presumption of influence - relevant consideration is the quality of consent by the donee - second defendant had independent legal advice - context in which gift is given is also relevant, including any benefits which are obtained by the donee - HELD - benefit to plaintiff was not procured by undue influence over the second defendant - DURESS - conduct alleged to amount to duress being alleged threats made against the person of the first defendant and an alleged threat to deny first defendant access to the second defendant - consideration of Karam and whether the alleged conduct must be unlawful to establish duress - alleged threats against person made two years before the deed entered into - no evidence aside from the first defendant's testimony that alleged threats to deny access to second defendant were made - HELD - duress not established by first defendant - DEED - non est factum defence not pleaded - even if first defendant succeeded in making out a vitiating factor the deed was only voidable and not void - whether deed would have been set aside in the circumstances of the case - OBITER - deed would not have been set aside - CONTRACTS REVIEW ACT - whether deed was 'unjust' - whether first defendant had standing to plead 'unjustness' insofar as the injustice pleaded was not suffered by the first defendant - HELD - first defendant had standing under the Contracts Review Act 1980 (NSW), however none of the allegations of injustice made out - EQUITY - equitable maxims - relief sought was approximate to specific performance as deed was executed rather than executory - whether plaintiff disentitled to relief due to unclean hands - where unclean hands alleged in relation to a putative breach of the deed by the plaintiff - where the relief sought would affect the interests of the second defendant as another party to the deed, the second defendant's interests are relevant to whether relief is denied - HELD - not satisfied that alleged conduct of the first defendant amounted to unclean hands Legislation Cited: Contracts Review Act 1980 (NSW) Guardianship Act 1987 (NSW) Law Reform (Miscellaneous Provisions) Act 1994 (NSW) Powers of Attorney Act 2003 (NSW) Real Property Act 1901 (NSW) Cases Cited: A Little Company Ltd v Peters [2007] NSWSC 833 Agricultural and Rural Finance Pty Ltd & Anor v John Edward Atkinson & Ors [2010] NSWSC 635 Arthur Young v Tieco International (1995) 182 LSJS 367 Ashpifel v Bryan (1884) 122 ER 999 Australian and New Zealand Banking Group v Aldrick Family Company Pty Ltd [2010] NSWSC 1000 Australia and New Zealand Banking Group v Karam [2005] NSWCA 344; (2005) 64 NSWLR 149 Australian Consolidated Press Ltd v Morgan (1965) 112 CLR 483 Baburin v Baburin [1990] 2 Qd R 101 Banks v Goodfellow (1870) LR QB 549 Banque Commerciale SA (in liq) v Akhil Holdings Ltd (1990) 169 CLR 279; 92 ALR 53; [1990] HCA 11 Barton v Armstrong [1976] AC 104; (1973) 3 ALR 355 Baulderstone Hornibrook v Gordian Runoff [2008] NSWCA 243 Black Uhlans Inc v NSW Crime Commission & Ors [2002] NSWSC 1060 Blanch v British American Tobacco Australia Services Ltd [2005] NSWSC 241; 62 NSWLR 653 Brandi v Mingot (1976) 12 ALR 551 Bridgewater v Leahy (1998) 94 CLR 457 Browne v Dunn (1893) 6 R 67 (HL) Bull v Fulton (1942) 66 CLR 295 Cadbury Schweppes Pty Ltd v Darrell Lea Chocolate Shops Pty Ltd (No 4) (2006) 229 ALR 136; [2006] FCA 446 Canon Australia Pty Ltd v Patton (2007) 244 CLR 759 Carantinos v Magafas [2008] NSWCA 304 Chappell & Co Ltd v Nestle Co Ltd [1960] AC 87 Charter Carter Pty Ltd v The Shop, Distributive and Allied Employees' Association of Western Australia (1987) 13 FCR 413 Clarke v Lopwell [2008] NSWSC 615 Commercial Bank of Australia v Amadio (1983) 151 CLR 447 Commonwealth of Australia v McLean (unreported, NSWCA, 31 December 1996) Corin v Patton (1990) 169 CLR 540 Crago v McIntyre [1976] 1 NSWLR 729 Crescendo Management v Westpac (1988) 19 NSWLR 40 Dalle-Molle (by his next friend Public Trustee) v Manos BC-200402709 Dimskal Shipping Co SA v International Transport Workers Federation (The Evia Luck) [1992] 2 AC 152 Director of Public Prosecutions for Northern Ireland v Lynch [1975] AC 653 Elders Rural Finance Ltd v Smith (1996) 41 NSWLR 296 Ellis v Wallsend District Hospital (1989) 17 NSWLR 553 EMG v Guardianship and Administration Board of Victoria (unreported, Supreme Court of NSW, Young J, 28 May 1999) Ford v his Tutor Watkinson v Perpetual Trustees Victoria Ltd [2009] NSWCA 186 Frizzo & Anor v Frizzo [2011] QSC 107 Gibbons v Wright (1954) 91 CLR 423 Gregory Paul Montfroy v Roads Corporation (trading as VicRoads) [2005] VSC 320 Harding v Tingey (1864) 12 WR 684 HML v R [2008] HCA 16; (2008) 235 CLR 334; (2008) 245 ALR 20 Ho v Powell (2001) 51 NSWLR 572; [2001] NSWCA 168 Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26 Howitt Transport v Transport and General Workers' Union [1973] ICR 1 Huguenin v Basely (1807) 14 Ves Jun Supp 273 Hume v Munro (No 2) (1943) 67 CLR 462 ICI Australia Operations Pty Ltd v Trade Practices Commission (1992) 38 FCR 248 Ingot v Macquarie [2004] NSWSC 1136 Ingot Capital Investments Pty Limited v Macquarie Equity Capital Markets Limited (2008) 73 NSWLR 653; (2008) 252 ALR 659; (2008) 68 ACSR 595; [2008] NSWCA 206 Jackamarra v Krakouer [1998] HCA 27 at 29; (1998) 195 CLR 516 Jenyns v Public Curator (Qld) (1953) 90 CLR 113 Johnson (by her tutor Smith) v Johnson [2009] NSWSC 503 Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298 Kation Pty Limited v Lamru Pty Limited [2009] 257 ALR 336 Katsilis v Broken Hill Pty Co Ltd (1977) 18 ALR 181; (1977) 52 ALJR 189 Kazar, in the matter of Frontier Architects Pty Ltd (in liq) [2010] FCA 1381 Kowalczuk v Accom Finance Pty Ltd (2008) 252 ALR 55 Kung v Wang Din Shin [2005] HKCFA 54 Low v Innes (1864) 4 De GJ & Sm 286 Lush v Russell (1850) 5 Exch 203 Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2007] NSWSC 12 Makita (Australia) Pty Limited v Sprowles (2001) 52 NSWLR 705 Malco Engineering Pty Limited v Ferreira & ors (1994) 10 NSWCCR 117 Massoud v NRMA Insurance Ltd (1995) 8 ANZ Insurance Cases 61-257 (75,873) Masterman-Lister v Brutton & Co [2003] 3 All ER 162 McLarnon v McLarnon (1968) 112 Sol J 419 McNair Anderson Associates Pty Ltd v Hinch; McNair Associates Pty Ltd v 3AW Broadcasting Co Pty Ltd [1985] VR 309 Mercantile Credit Co Ltd v Hamblin [1965] 2 QB 242; [1964] 3 All ER 592 Mitchell v Pacific Dawn Pty Ltd [2006] QSC 198 Musumeci v Winadell Pty Ltd (1994) 34 NSWLR 723 Murphy v Doman [2003] NSWCA 249 Nowlan v Marson Transport Pty Ltd [2001] NSWCA 346 O'Brien v Australia and New Zealand Bank Ltd (1971) 5 SASR 347 Orleans Investments Pty Ltd and Anor v Mindshare Communications Ltd [2009] NSWCA 40 Paric v John Holland Constructions Pty Ltd [1984] 2 NSWLR 505 Patterson v Pongrass Group Operations Pty Ltd [2011] NSWSC 1588 Petelin v Cullen (1975) 132 CLR 355; 6 ALR 129 Poricanin v Australian Consolidated Industries Ltd [1979] 2 NSWLR 419 PT Ltd v Maradona Pty Ltd (1992) 25 NSWLR 643 Ratcliffe v Evans (1892) 2 QB 524 Re Bega Co-operative Society Ltd & Anor v The Milk Authority of the Australian Capital Territory & Anor [1997] FCA 200 Read v Nerey Nominees Pty Ltd [1979] VR 47 Riz v Perpetual Trustee Australia Ltd (2008) NSW ConvR 56-198; [2007] NSWSC 1153 Sanpine v Koompahtoo Local Aboriginal Land Council [2005] NSWSC 365 Saunders v Anglia Building Society [1971] AC 1004; [1970] 3 All ER 961 Saxon v Saxon [1976] 4 WWR 300 Silver v Dome Resources NL [2007] NSWSC 455 Smith v Elders Rural Finance Pty Ltd (1995) Aust Contract R 90-054 Spina v Conran Associates Pty Ltd [2008] NSWSC 326 Spina v Permanent Custodians Ltd (2009) 14 BPR 26,923 Spokes v Banbury Board of Health (1865) LR 1 Eq 42 Sternbeck v Sternbeck (1968) 11 FLR 360 Szabo v Battye [2006] NSWSC 1351 Szozda v Szozda [2010] NSWSC 804 Temiha v Sadebarth [1997] NSWCA 308 The Juliana (1822) 2 Dods 504 Thomas v Thomas (1842) 2QB 851 Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (1938) 38 SR (NSW) 632 Vella v Permanent Mortgagee Pty Ltd [2008] NSWSC 505 Vines v Australian Securities and Investments Commission (2007) 73 NSWLR 451; (2007) 62 ACSR 1; [2007] NSWCA 75 Walker v Police (Unreported, Supreme Court of South Australia, Mullighan J, 19 June 1998) Watson v Foxman (1995) 49 NSWLR 315 West v AGC (Advances) Ltd (1986) 5 NSWLR 610 Whereat v Duff [1972] 2 NSWLR 147 White v Overland [2001] FCA 1333 Winefield v Clarke [2008] NSWSC 82 Texts Cited: J W Carter, E Peden and G J Tolhurst in Contract Law in Australia (5th ed, 2007) J Fonblanque, Treatise of Equity (1831) J D Heydon, Cross on Evidence (8th Australian ed) R P Meagher, W M C Gummow and J R F Lehane, Meagher Gummow and Lehane's Equity: Doctrines and Remedies (3rd ed, 1992) R Meagher, D Heydon and M Leeming, Meagher Gummow and Lehane's Equity: Doctrines and Remedies (4th ed, 2002) Myers, Australian Bar Gazette, 1967 Vol 2 p 3 P Vout (ed), Unconscionable Conduct the Laws of Australia (2006) Category: Principal judgment Parties: A (Plaintiff/Cross Defendant) N (First Defendant/Cross Claimant) E (by the NSW Trustee & Guardian (formerly Office of the Protective Commissioner) as Manager of the Estate of the Second Defendant) (Second Defendant/Second Cross Defendant) Representation: Counsel D Roberts (Plaintiff/First Cross Defendant) SS Ahmed (First Defendant/Cross Claimant) C Zucker (Solicitor) (Second Defendant/Second Cross Defendant) Solicitors Hunt & Hunt (Plaintiff/First Cross Defendant) Buttar Caldwell & Co (First Defendant/Cross Claimant) Zucker Legal (Second Defendant/Second Cross Defendant) File Number(s): 09/287664