Lowe v Pascoe (No 4) [2012] NSWSC 1493

Supreme Court New South Wales

Medium Neutral Citation: Lowe v Pascoe (No 4) [2012] NSWSC 1493 Hearing dates: 13-15, 17, 21 August 2012 Decision date: 05 December 2012 Jurisdiction: Equity Division Before: Gzell J Decision: Parties to be heard on suitable declarations and orders, costs and directions for the taking of accounts. Catchwords: PARTNERSHIP - Actions by and against partners - partnership funds mixed with funds of a partner and used to purchase residential investment properties - fresh trial under Civil Procedure Act 2005, s 88(1) - evidence at first trial admitted without need to recall witnesses under s 89(2)(a) - cash businesses - unreported cash sales - trust property in strict sense followed into hands of persons other than bona fide purchasers for value without notice - institutional constructive trust in favour of partners - onus of proof - withdrawal of election for equitable compensation rather than account of profits - equity to mould suitable relief - partner entitled to a percentage interest in properties in proportion to his capacity to contribute to the purchase prices. Legislation Cited: Civil Procedure Act 2005 (NSW) Partnership Act 1892 (NSW) Evidence Act 1995 (NSW) Income Tax Act 1968 (Cth) Income Tax Act 1969 (Cth) Income Tax Act 1972 (Cth) Income Tax (Rates) Act 1976 (Cth) Income Tax (Rates) Act 1982 (Cth) Income Tax Rates Act 1986 (Cth) Uniform Civil Procedure Rules Cases Cited: Adler v Australian Securities and Investments Commission [2003] NSWCA 131; (2003) 179 FLR 1 Barclays Bank Plc v Boulter [1999] 1 WLR 1919 Barnes v Addy (1874) LR 9 Ch App 244 Bathurst City Council v PWC Properties Pty Ltd (1998-1999) 195 CLR 566 Birtchnell v Equity Trustees, Executors and Agency Co Ltd (1929) 42 CLR 384 Blatch v Archer (1774) 1 Cowp 64, 98 ER 969 Brady v Stapleton (1952) 88 CLR 322 Canny Gabriel Castle Jackson Advertising Pty Ltd v Volume Sales (Finance) Pty Ltd (1974) 131 CLR 321 Carmichael v Evans [1904] 1 Ch 486 Cassels v. Stewart (1881) 6 App Cas 64 at 79 CEPU v Australian Competition and Consumer Commission [2007] FCAFC 132; (2007) 162 FCR 466 Chan v Zacharia (1984) 154 CLR 178 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89 Frith v Cartland (1865) 2 Hem & M; 71 ER 525 Giumelli v Giumelli (1998) 196 CLR 101 Gordon v Gonda [1955] 1 WLR 885 Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; (2012) 200 FCR 296 Helmore v. Smith (1886) 35 Ch. D. 436 at 444 Hospital Products Ltd v United States Surgical Corporation (1985) 156 CLR 41 In re Sharpe [1980] 1 WLR 219 Lissenden v CAV Bosch Ltd [1940] AC 412 Lowe v Pascoe [2012] NSWSC 151 Lowe v Pascoe (No 2) [2012] NSWSC 885 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 110 ALR 449 Porter v Macedon Ranges Insurance Agency (1996) 66 IR 195 Re Nisbet and Potts' Contract [1905] 1 Ch 391 Sargent v ASL Developments Ltd (1974) 131 CLR 634 Scarf v Jardine (1882) LR 7 App Cas 345 Strang v Owens (1925) 42 WN (NSW) 183 United States Surgical Corporation v Hospital Products International Pty Ltd [1983] 2 NSWLR 157 Vyse v Foster (1872) LR 8 Ch App 309 Warman International Ltd v Dwyer (1995) 182 CLR 544 Texts Cited: J D Heydon and M J Leeming, Jacobs' Law of Trusts in Australia, 7th ed (2006) LexisNexis Butterworths R Meagher, D Heydon and M Leeming, Meagher, Gummow & Lehane's Equity Doctrines and Remedies, 4th ed (2002) LexisNexis Butterworths R Banks (ed), Lindley & Banks on Partnership, 17th ed (1995) Sweet & Maxwell Category: Separate question Parties: Geoffrey Alan Lowe (First Plaintiff) Mary Lowe (Second Plaintiff) Scott Pascoe (First Defendant) Margaret Sze Tu (Second Defendant) Helen Sze Tu (Third Defendant) Janet McNamara (Fourth Defendant) Shiu Shing (Sunly) Sze Tu (Fifth Defendant) Shie How (Gordon) Sze Tu (Sixth Defendant) Stella Sze Tu (Seventh Defendant) Representation: Counsel: C R C Newlinds SC/ C H Withers (Plaintiffs) J Stoljar SC (First defendant) In person (Second and third defendants) D Williams SC/ J D Little (Fifth and sixth defendants) Solicitors: Holding Redlich (Plaintiffs) Argyle Lawyers (First defendant) CLS Legal (Fifth and sixth defendants) File Number(s): SC 2005/262284