Lake v Crawford

Judgment 1Desmond Kenneth Lake, formerly a well-known jockey and horse trainer, commenced proceedings in 2009. 2At that time, he was under a legal incapacity and so the proceedings were commenced by his tutors, Gregory Grant Shand and Helen Keilar. 3Mr Lake was married to Deanne Lake. She died on 21 November 2008. The tutors are related to Mr and Mrs Lake. 4The defendants are Ngaope Hoia Crawford, who is generally known as Sonny Crawford, and a company, Delcort Investments Pty Ltd ("Delcort"), with which Mr Crawford is connected. 5The plaintiff claims that at a time when he was incapable of rational decision-making, and did not know the nature and effect of what he was doing, he appointed his two tutors and Mrs Lake as his enduring guardians. He says that the appointment was invalid. 6He further says that, from at least December 2006, Mrs Lake was an alcoholic and had an alcohol dependency, had a substance abuse disorder, had a number of personality disorders and was cognitively impaired. He says that as a consequence of those conditions, she was unable to adequately look after herself and required a high degree of personal assistance. He also alleges that for a 12 month period leading up to her death, Mrs Lake regularly took oxycodone and benzodiazepines which caused her to be mentally confused, and to lack rational cognition. 7It seems to be undisputed that during the period of time leading up to Mrs Lake's death, the first defendant, Sonny Crawford, lived with Mr and Mrs Lake and provided them both with some personal assistance. 8On 20 November 2007, the sum of $2.8M was transferred from Mr Lake's bank account to the bank account of the first defendant, Sonny Crawford. This fact is not in dispute. 9On 15 January 2008, the sum of $100,000 was transferred from Mr Lake's bank account to the first defendant. This fact is not in dispute. 10On 30 January 2008, the sum of $1M was transferred from Mr Lake's bank account to the first defendant's bank account. Again, this transfer is not disputed. 11It is asserted by the first defendant, that the monies were transferred on the authority, and at the direction of, Mrs Lake. The plaintiffs allege that at that stage, Mrs Lake was incapable of authorising such transfers, did not understand and was incapable of understanding the nature and effect of the transactions, did not have the authority to pay the monies beneficially to Sonny Crawford, and in acting as she did, she was acting under the influence of Sonny Crawford. 12At about the same time as these transfers occurred, the second defendant, Delcort, purchased land at Bringelly. It paid the sum of $1.345M. Settlement of the contract for sale took place on 6 February 2008. It is alleged by the plaintiff that the entire purchase price of $1.345M paid by Delcort for this property at Bringelly was obtained from part of the monies transferred into the Sonny Crawford's bank account. 13The plaintiff's claim the return of the monies from Mr Crawford and Delcort based upon restitutionary principles. They also plead a common money count of money had and received. 14The defendants filed a defence in which, putting it briefly, they admit the transfers of the money, allege that the transfers were properly authorised by a person of full capacity and deny the plaintiff's restitutionary claims.