The alleged oral agreement
14 In 1979 and 1980 there were discussions between Kerry, John and Mr Hooper. There is some dispute as to who initiated those discussions. It appears that Mr Hooper thought that it would be good for Diane to move to the Maralya property. Although there is some dispute as to who proposed the idea for a "swap", Mr Hooper either proposed or acceded to a suggestion, in effect, that the Maralya property be swapped for Belvedere, with no financial adjustment. I do not think that anything turns on the detail of who initiated those discussions, or who first proposed the idea of a swap.
15 Kerry and John say that they understood the reference to Belvedere to be a reference to all 14 lots - ie, to a property including the disputed lots.
16 There is a slight twist that should be mentioned. The disputed lots are four in number. However, only three of those had been comprised in the 1979 transfer: lots 11, 67 and 83. Lot 14 had been comprised in the 1978 transfer. It appears that Mr Hooper had aggregated lot 14 with the other three of the disputed lots. This was logical, since without lot 14 lot 67 had no access to either the other disputed lots or, indeed, the undisputed lots.
17 To jump ahead: Kerry was aware of the situation in relation to lot 14 by at least July 1992. In a letter of 20 July 1992 from her then solicitors to the solicitors for the executors of Mr Hooper's will, a question was raised relating to lot 14. An available (and in my view a strong) inference from that letter is that, at least in 1992, Kerry's only concern was that Belvedere did not include lot 14. The letter did not mention the other three disputed lots.
18 Kerry and John say that they asked Mr Hooper to define the land that would be swapped for the Maralya property. They say that Mr Hooper took out a map and ran his finger around a parcel of land that included not only the 14 lots but also another adjacent lot, known as lot 94, which he did not own (nor was it owned by Mark, Diane and Virginia). Kerry and John say that they raised with Mr Hooper the fact that he did not "own" lot 94, and that there was some discussion of this.
19 I have grave doubts about this evidence. Firstly, it did not appear until Kerry and John filed further affidavits shortly before the start of the hearing. Their earlier affidavits, which (as to some, but not all, in Kerry's case) were quite detailed, made no reference to this event.
20 Secondly, I have concluded that I should not accept Kerry's evidence except where it is supported by other and acceptable evidence, or is consistent with what I regard as the probabilities objectively ascertained, or is against interest. Kerry's evidence was marked by inconsistencies, including as to matters at the heart of the dispute. For example, in paragraph 13 of her detailed affidavit sworn on 8 August 2006, Kerry said that she did not recall the detail of her discussions with Mr Hooper as to the swap. But some 15 months later, in her affidavit sworn on 13 November 2007, Kerry gave what purported to be a detailed account of those discussions. Her explanation - that she had thought more about the matter - was contrived and suggests a process of reconstruction to meet the perceived needs of her case.
21 Again, in paragraph 54 of her affidavit sworn on 13 November 2007, Kerry claimed that Mr Hooper had always referred to Belvedere as "Gulgong". But elsewhere in her affidavit evidence she has him referring to it as Belvedere.
22 Further, in my assessment of the credibility to be attached to Kerry's evidence, I rely on the matters to which I refer below as to inconsistencies between Kerry's evidence in these proceedings in relation to the payment of rates and prior statements (including on oath) made by her.
23 Further, Kerry's cross-examination was heavily marked by argumentative, non-responsive and forcing answers. I have the strong impression that she was more concerned to support her case than to answer truthfully and directly.
24 Finally, much of her evidence is inconsistent with other evidence that I regard as credible. I refer to her evidence as to rates, which I deal with below. I refer again to other evidence dealing with her knowledge in 1985 of what was comprised in the transfer to her and John. Again, I deal with that evidence below.
25 In general, I thought that John sought to the best of his ability to give truthful evidence. However, it was obvious that his recollection was less than clear - hardly surprising, given that he and Kerry had separated in 1985 and gone their separate ways. In the following years, John returned only once to Belvedere, in 1991 for the wedding of his and Kerry's daughter.
26 I am not satisfied that Mr Hooper did, on request or at all, outline the 14 lots on a map as alleged by Kerry and John.
27 In this context, I note that my impression of Mr Hooper, on the evidence as a whole, is of a man who is unlikely to have made the mistake attributed to him in respect of lot 94.
28 The submissions for Kerry relied on the evidence of Mr Phillip Attard, a former neighbour of the Hooper family and a childhood friend of the Hooper children. I accept Mr Attard as a witness who sought to tell the truth to the best of his ability. But he had little real recall of detail, and his evidence in some respects was plainly wrong. Mr Attard said that Mr Hooper had said to him that there had been an agreement for a swap. But Mr Attard's evidence did not identify "Belvedere" or (as at times he said Mr Hooper called it "Gulgong"), as including the disputed lots. I do not regard his evidence as offering acceptable corroboration of the making of the alleged oral agreement.
29 The swap occurred, in a physical sense, in 1980. Kerry and John moved to Belvedere with their children. (The house on that property - situated on one of the undisputed lots - required, and had received, some renovation.) Diane moved to the Maralya property. Kerry and John say that after they moved to Belvedere they improved it and that they ran sheep and cattle on it: all 14 lots, not just ten. I am satisfied that to some extent they did so.
The transfer of title
30 Kerry and John say that on a number of occasions they requested Mr Hooper to transfer to them the title to Belvedere. It would appear that discussions on this topic became heated.
31 The issue became acute in late 1984 or early 1985. Mr Hooper had apparently listed the Maralya property for sale. (At this time, it still stood in the names of Kerry, John and Mrs Hooper.) Mr Hooper agreed to procure the transfer of Belvedere - or at least, the ten undisputed lots - to Kerry and John.
32 Kerry and John say that in about May 1985, Mr Hooper came to see them at Belvedere, bringing with him a quantity of papers. He wanted them to sign the papers. They say that he put the papers before them and told them to sign, without giving them any real opportunity to examine what it was that they were to sign. They seem to suggest that the documents that they then signed included an agreement for sale and a transfer to them of the ten undisputed lots, and a deed between them and Mrs Hooper.
33 The agreement for sale was dated 1 February 1985. The transfer was dated 23 May 1985. The deed was dated 1 March 1985.
34 Kerry and John had signed a transfer of the Maralya property - to a Dr James Harold Price - a year earlier. That transfer is dated 17 May 1984, and was registered on 7 June 1984. Neither Kerry nor John offered any explanation as to why they signed this transfer before Belvedere was transferred to them.
35 Kerry's and John's signatures to the agreement for sale and the transfer to them of the undisputed lots was witnessed by a Mr Jeffrey McQuiggen, then a bank officer at Mudgee. Kerry and John suggest that Mr McQuiggen was not present when they signed those documents. Although Mr McQuiggen still lives and works in Mudgee, neither side called him to give evidence.
36 The deed to which I have referred is said to be one "Made on the first day of March one thousand nine hundred and eighty-five". The word "five" has been written in hand in substitution for the typed word "four" which has been struck through. Mr Hooper witnessed the signatures of Kerry and John to that deed. The deed charges the undisputed lots, which are described collectively as "the property Belvedere Gulgong" with the payment to Mrs Hooper of $40,000 said to be owing to her following the sale of the Maralya property.
37 Kerry and John deny that they owed Mrs Hooper any money. I think it likely that they did. I think it likely that the $40,000 represents, or reflects, in substance Mrs Hooper's one third interest in the Maralya property.
38 There is a sharp divergence between Kerry's and John's evidence as to the signing of the transfer to them of the ten lots. Kerry says that she was unaware that the transfer was for ten lots only and not all 14. John, however, says that he and Kerry did notice that the transfer did not include all 14 lots. I accept John's evidence on that point. I note that the agreement for sale describes its subject matter - the undisputed lots and no others - individually, by number. I think that Kerry's profession of ignorance is an untruth, designed to advance her cause in these proceedings.
39 In paragraphs 10 to 12 of her affidavit sworn 3 May 2006, Kerry sought to suggest that it was not until 2004 that she became aware that the 1985 transfer excluded the four disputed lots. I do not accept that. There is incontrovertible evidence that Kerry was aware of this by at least 1992 when she sought permission to erect a rural dwelling house on the undisputed lots. In a signed application to the council, Kerry stated the owners of the disputed lots as Mark, Diane and Virginia. Again, in 1992 Kerry sought to shift the burden of some outgoings on the disputed lots from herself to her siblings.
40 In truth, I think, Kerry was aware of the precise contents of the transfer not just in 1992, but at the latest by the end of 1985.
41 As I have said, I regard this aspect of Kerry's evidence as a deliberate fabrication, designed to advance her cause. It goes to two central issues. The first is her claim to have had the intention to possess the disputed lots, that intention being based on her alleged rights under the oral agreement. The second is Mark's "limitation" defence to the claim for specific performance. In my view Kerry's willingness to fabricate evidence on such central issues is a most serious factor. It is one that I have taken into account in my assessment of the credibility of her evidence.