19 Ms Yang says that she told Mr Jin she would agree if he had made up his mind.
20 As at 3 June 2005 Mr Jin had not been advised that his application for subsidised housing through the Department of Housing had been successful. However, his application was pending and he was in receipt of social security payments. His application was successful very shortly thereafter. On 10 June 2005, he completed a form called an Application for Rental Subsidy provided by the Department of Housing. He did so in conjunction with taking possession of a unit provided by the department in Ennis Street, Milsons Point. He became entitled to possession of the unit under a tenancy agreement with the department. He occupied the unit briefly. He deposed that on 8 June 2005, he moved into the unit with his grandson and on 18 June 2005 he moved into the unit briefly with Ms Yang. At that time Mr Jin's grandson was not in occupation.
21 The application for rental subsidy required Mr Jin to state whether he owned or part-owned any property, including the unit. He answered that question "No". The tenancy agreement provided that the tenant was required to occupy the premises personally at all times. The lease could be terminated for breach of that obligation. However, the tenant could assign or sublet with the department's permission.
22 Notwithstanding the entry into the tenancy agreement for the Milsons Point unit, the parties proceeded with the purchase of the Ashfield property. On 21 June 2005, Mr Jin drew a cheque for $12,230 in payment of stamp duty. Ms Yang says that she paid the stamp duty using the cheque Mr Jin provided her as a gift.
23 At some time on or after 21 June 2005, Ms Yang signed a Real Property Act transfer of the land as transferee. Again, her signature was witnessed by her son, who gave his address as 5 Farncomb Place, Gowrie in the Australian Capital Territory. Ms Yang had obtained approval of a loan of $100,000 through a mortgage originator called AIMS Home Loans.
24 On 29 June 2005, Mr Jin deposited $117,770 with the vendor of the Ashfield property (Meriton Property Finance Pty Limited). Settlement of the purchase of the Ashfield unit took place on 1 July 2005. The balance paid on settlement was $334,892.40. Of that amount, Ms Yang paid $217,122 of which $100,000 was borrowed from Perpetual Trustee Co Ltd acting for AIMS Home Loans. Of the balance of $117,122, Ms Yang borrowed $97,181.47 from a friend, Mr John Lee. The balance of $19,940.93 was paid from her savings.
25 The parties moved into the Ashfield unit on 2 or 3 July 2005. Although he denied it, Mr Jin thereafter advertised the Milsons Point property through the Chinese newspapers and let that property on the open market.
26 On 6 September 2005, the parties had a discussion about the cost of purchase of the Ashfield unit. Ms Yang deposed that:
" During that conversation I showed the plaintiff certain documents and together we calculated the various components of the purchase price, which was at that time agreed to be approximately $388,000. Annexed hereto and marked with the letter 'G' is a true copy of a document in my handwriting which I showed the plaintiff on 6 September 2005.
Endorsed on the document are words in Mandarin which translates [sic] to ' Mr Jin gave Wei Yang $150,000'."
27 The document Ms Yang prepared contained some characters in Mandarin, but they did not say what she asserted them to say in the last sentence quoted above. The document listed 13 items going to the cost of purchase of the property including the price, stamp duty, search/settlement fees, fees for strata certificates, rates and other certificates, a fee for a person to attend on settlement, the agent's fee on obtaining the loan, a legal fee (which I infer was for fees of the mortgagee as Ms Yang acted for herself on the conveyance) and the pest inspection report. She calculated the total cost as being $388,139.19, which contains a small arithmetical error of no significance. On the document she wrote in English, "Mr Jin gave $150,000 to the day 30/6/05."
28 According to Ms Yang, there was then a conversation to the following effect:
" Yong Tang Jin: 'What a shame. It appears that I have paid less than you for the property. I shall give you some more money as soon as I receive repayment from the people that owe me money.'
Myself: 'You don't have to.'"
29 The inference from the fact that Ms Yang made a detailed calculation of the total cost of the purchase, discussed it with Mr Jin and stated on the document that Mr Jin had given $150,000 as at 30 June 2005 is that there was a connection between his payments and the total cost of purchase. On Ms Yang's case, the payments made by Mr Jin were an absolute gift to her. If that were so there is no apparent reason why she should have prepared a document and discussed it with Mr Jin, let alone why she should have noted that he had paid (or given, as is stated on the document) $150,000 as at 30 June 2005.
30 The events which followed also provide objective support for Mr Jin's contention that on that day Ms Yang said to him that, "You need to put in more money to pay up for your 50% for the unit" (a conversation which she denies).
31 On 26 September 2005, Mr Jin gave Ms Yang a cheque for $5,122 which she deposited in her bank account. On 27 September, he gave her cash of $4,878. Ms Yang denies receiving any such sum. However, the payment is corroborated by a contemporaneous diary note of Mr Jin's. Moreover, on 27 September 2005, Ms Yang deposited $4,900 into her bank account. I conclude that Mr Jin did pay $4,878 as he deposed. The two payments total $10,000. On 4 October 2005, Ms Yang paid $15,000 to reduce the principal on her mortgage.
32 On 9 January 2006, Mr Jin gave Ms Yang a cheque for $30,000 drawn by his daughter and made out to himself. He accompanied Ms Yang to her bank where she deposited the cheque. Ms Yang deposed that Mr Jin told her:
" Someone has repaid me a loan. I have $30,000 which I want to give to you. I am accustomed to give my former wives money to do whatever they wanted [sic] with. This money is for you to do whatever you want to [sic] with. I want to give this money to you. My daughter helps me from time to time when I receive monies so that I don't have to disclose the monies to Centrelink. "
33 Mr Jin denied this and said that the conversation was to the effect that Ms Yang said he still owed her $34,000 towards half of the cost of the unit. He deposed to saying that this was too much because he had bought the furniture for the unit and her nephew was staying there as well. He also claims that he said that Ms Yang had not shown him the receipts. He says he borrowed the $30,000 from his daughter when he gave the cheque to Ms Yang.
34 Mr Jin purchased various items of furniture for the Ashfield unit. Although Ms Yang denied it, I also accept that he made some payments towards strata levies and other such expenses. For example, his diary entry for 3 October 2005 records his paying $474 to Ms Yang for the strata levy for three months from October to December. He also later notes having paid a water bill and a gas bill.
35 Relations between the parties soured from about May 2006 when Ms Yang discovered and read Mr Jin's diary. She took a photocopy of most of it. It records Mr Jin's continuing a sexual relationship with another woman whom he had been seeing prior to meeting Ms Yang.
36 On 29 May 2006, Ms Yang and her son signed a contract for her to sell the Ashfield unit to her son for $372,000. That sale was completed on 22 June 2006. Mr Keliang Yang became registered as the proprietor of the land on 1 July 2006. This transfer was kept secret from Mr Jin. Ms Yang said in evidence that it was none of his business.
37 In August 2006, as I infer, Mr Jin prepared another schedule of the costs for the purchase of the unit by copying Ms Yang's figures from the earlier document of 6 September. Mr Jin said that he prepared this document on 6 September 2005 but it contains a reference to a claim for 58 weeks' rent in respect of Ms Yang's nephew. Mr Jin did not say that those words were added on a later occasion. Those words show that the document was prepared much later than September 2005. As I have said, I infer it was prepared in August 2006.
38 Ms Yang added words to the bottom of the page in Mandarin which, when translated, include a reference to, "Owe every three months $1,177". It is clear from the document $1,177 was a calculation of half of bills for electricity, gas, management fees, telephone and water for three months from July to September. Ms Yang also wrote, "In total owe $5,858 plus telephone connection of $30 plus $10" (or the figure might be $100, as it has been cut off on the photocopy).
39 Ms Yang was asked about these words, but did not give a responsive or intelligible answer. Later she addressed other parts of the document written by Mr Jin. In my view, in writing those words she was then asserting to Mr Jin at least that if he were to make a claim for half of rent attributable to her nephew's occupation, he should be surcharged with half of the expenses of the property. There is no reason she should have advanced that contention if, as she says, the payments made by Mr Jin were an absolute gift to her and he had no interest at all in the property.
40 Mr Wilson, who appeared with Ms Kako for Ms Yang, submitted that the question of whether the payments made by Mr Jin were a gift to Ms Yang turned on the credibility of each witness. Certainly their credibility is highly material. However, I do not accept either as a credible witness. Mr Jin gave his evidence through an interpreter. Ms Yang did not give evidence through an interpreter, save for occasional questions, but English is not her first language. I make full allowance for the language difficulties under which both laboured. Notwithstanding that, the evidence of both Mr Jin and Ms Yang was frequently unresponsive and evasive. Both took refuge in professing not to understand questions when, in my view, they were considering where the cross-examiner might be seeking to lead them.
41 Mr Jin has been shown to have made false statements in his affidavits. For example, he denied placing an advertisement for the Milsons Point unit when it was clearly proved that he did so, as he was eventually forced to concede. He appears to have understated substantially his income from his Chinese pension to Centrelink. He deposed that he had ended his relationship with Ms Fu in late 2004 or early 2005, when his diary shows that he had not. Although there was some ambiguity in the words used in his diary as to whether he was describing a continuing sexual relationship with Ms Fu, the context shows that he was. At some time he made "corrections" to an entry in his diary to describe his activity with Ms Fu. His evidence as to his sources of income was confusing and I attribute that, at least in part, to his not being frank in his answers.
42 Ms Yang was also not a credible witness. Apart from the direct contradictions between her affidavit and her oral evidence in relation to her son witnessing her signature to the contract of 27 May (referred to earlier) and her untruthful statement as to what was written in Mandarin characters on the document prepared on 6 September 2005, she gave other evidence I refer to later in these reasons concerning the disposition of sale proceeds of the Ashfield unit and the Canberra property which stretch credulity.
43 Mr Wilson submitted that if I found that neither party was credible then the plaintiff would fail because the plaintiff needed to show that the parties had a common intention that he acquire a beneficial interest in the Ashfield property. Mr Wilson correctly noted that the plaintiff had not alleged that there was a resulting trust and the case was not opened or conducted on that basis. However, I do not accept his submission as to the consequence of finding that neither party is a credible witness. The question is, rather, whether the objective circumstances indicate that the payments were a gift to Ms Yang, or a loan, or were made with a view to both parties sharing the ownership of the property.
44 I venture to repeat what I said in Shepherd v Doolan [2005] NSWSC 42 in relation to "common intention" constructive trusts (at [31] and [34]-[42]):
" 31 One class of case where equity will intervene to prevent the unconscientious denial by the legal owner of another party's rights, is where the parties agreed, or it was their common intention, that the claimant should have an interest in the property owned by the other, and the claimant acted to his or her detriment on the basis of that agreement or common intention (e.g Grant v Edwards [1986] Ch 638; Green v Green (1989) 17 NSWLR 343; Maharaj v Chand [1986] AC 898 at 907).
...
34 Where a constructive trust is imposed, based upon the parties' common intention as to the ownership of property upon which the claimant has acted to his or her detriment, the inquiry is as to the actual intention of the parties. The law does not impute a presumed intention to the parties based upon what the Court considers fair and reasonable persons in the position of the parties would have intended had they turned their minds to the issue (Pettitt v Pettitt [1970] AC 777 at 804, 810, 816-817; Gissing v Gissing [1971] AC 886 at 900, 902, 905-909; Allen v Snyder [1977] 2 NSWLR 685 at 690, 698, 701).