[2025] WASC 529
General information, not legal advice.
Supreme Court of WA
2026-03-06
Seaward J
Original judgment source is linked above.
Dear Associate,
As of today, my engagement as counsel for the defendant in this proceeding has concluded.
I understand that the Court and the plaintiff's representatives have the appropriate contact details for the defendant.
(1) In terms of the primary remedy, the plaintiff seeks an order that the defendant pay the plaintiff the sum of $372,717.43 by way of equitable compensation. The plaintiff does not seek the imposition of a constructive trust. This amount is comprised of the two transfers from the plaintiff to the defendant;
(2) In addition to the above amount, the plaintiff also seeks the payment of $216,466 by way of pre‑judgment interest, calculated at a rate of 6% pursuant to s 32 of the Supreme Court Act 1935 (WA) (Supreme Court Act) from 1 June 2016 to 24 February 2026 (being 3555 days). The plaintiff therefore seeks an order that judgment be entered in the vicinity of $589,000.
(3) An equitable lien be granted over the Yokine Property and this lien secure payment of the judgment sum.
(4) If the judgment debt is not paid in full by 6 March 2026 then, pursuant to O 53 r 2 of the Rules of the Supreme Court 1971 (WA) (RSC), the Yokine Property is to be sold.
(5) Orders that the freezing orders previously made by this court remain in place until the judgment debt has been paid or the sale of the Yokine Property has been settled, whichever is sooner.
(6) An order that the defendant pay the plaintiff's costs of the action, excluding the costs referred to in order 6 of the orders made by the Court of Appeal on 29 July 2022.
(1) Instead of the monetary order sought by the plaintiff, one of the following two options which I will summarise:
(a) The plaintiff lives in the Yokine Property or if she is not capable of living in the Yokine Property, the plaintiff rents out the Yokine Property until her death, at which time it reverts back to the defendant.
(b) The defendant pay the balance owing on the mortgage, being the amount of $186,000, which the defendant will do by using the amount of $181,000 in her superannuation fund, which the defendant submits she can only use if she changes jobs, which she says she can do.
(a) The plaintiff accepts a cash figure that meets her needs, but does not require the defendant to sell her home.
(b) The only cash the defendant has is her superannuation fund in the amount of $181,000 which the defendant can only use if she changes jobs, which she says she can do.
(2) The caveat remains over the Yokine Property, and therefore an equitable lien is not necessary.
(1) Is it appropriate to order the defendant to pay a sum of money by way of equitable compensation, and if so how much, or is it appropriate to make an order by way of a constructive trust or an order along the lines of options 1 or 2 advanced by the defendant?
(2) Is it appropriate to order pre-judgment interest, and if so at what rate and over what period?
(3) Is it appropriate to order an equitable lien?
(4) Is it appropriate to order that a sale take place of the Yokine Property pursuant to O 53 r 2?
(5) Is it appropriate to keep in place the freezing orders previously made by this court until the judgment debt or the Yokine Property has settled?
(6) What is the appropriate costs order?
(1) the imposition of a constructive trust, see for example in Muschinski v Dodds[2] and Baumgartner v Baumgartner[3]; and
(2) the payment of equitable compensation, sometimes with interest and sometimes secured by an equitable lien or charge, see for example Krajovaska v Kravjovska,[4] and Henderson v Miles (No 2),[5] Morris v Morris[6] and the decision of Gibbs CJ in Muschinski v Dodds[7].
Issue 1 - equitable compensation/constructive trust/defendant's option 1
(1) The joint endeavour failed between March and May 2016, which was very early in the joint endeavour. Since that time, the defendant has had exclusive possession of the Yokine Property, and has maintained the property, paid the mortgage payments and undertaken some renovations on the Yokine Property.
(2) The plaintiff never lived in the Yokine Property and has not contributed to the maintenance of the property, the renovations or the mortgage payments over time, over and above the amounts of the two transfers.
(3) I have found that the joint endeavour was that the parties agreed to pool their resources and purchase one or two properties near Briana for them to live in to provide for their mutual welfare and benefit. I have found that after the sale of the Ashlar Glen lease, the joint endeavour evolved such that the proposal was for the defendant to continue to live in the Yokine Property, and a second property would be purchased for the plaintiff to live in, using the proceeds of the second transfer and the sale of the Cookernup Property.[9] That is, the joint endeavour contemplated that the defendant would continue to live in the Yokine Property whilst an alternative property was purchased for the plaintiff.
(4) The relationship between the parties has completely broken down such that this is not a case where the parties can reside together in the property or a case where co-ownership of the Yokine Property will quell the controversy between the parties.
(5) The amount of the plaintiff's contribution to the joint endeavour is clear and ascertainable.
(6) It appears that there is a still a mortgage over the property, with money owing by the defendant to her bank, which further complicates the imposition of a constructive trust.
(1) The option proceeds on the basis that legal title in the Yokine Property would at all times remain with the defendant. I consider there are too many uncertainties as to how the option would operate in practice if the plaintiff is not the registered proprietor of the property, particularly in so far as it is being proposed that the plaintiff could rent out the Yokine Property, as that appears to be the option that would be pursued given the plaintiff's inability to now live in the Yokine Property.
(2) The currently existing mortgage would need to be considered. The option proposes that the defendant would pay this mortgage, but this is dependent on the defendant being able to access her superannuation. The defendant submits that she is able to access her superannuation at her age, if she leaves her current job. The defendant submits that she has found another job. On the basis of the material before me, even if it were in affidavit form, the ability for this to occur, and if so the timing, is speculative and contingent on factors beyond the ability of the plaintiff or the court to control.
(3) I do not consider option 1 appropriately responds to the windfall gain of the defendant when considered in the circumstances of the entire case. It does not appropriately address the two transfers of money in a timely fashion and does not appropriately result in the atonement for the unconscionable conduct.
(4) I do not consider that option 1 will therefore quell the controversy between the parties, and in light of the first two matters I have identified, I am concerned that it may result in further controversies between the parties in the future.
In any proceedings for the recovery of any money (including any debt or damages or the value of any goods), the Court may order that there shall be included, in the sum for which judgment is given, interest at such rate as it thinks fit on the whole or any part of the money for the whole or any part of the period between the date when the cause of action arose and the date when the judgment takes effect.
(1) section 32(1) provides for a discretion, and there is no entitlement to an award of pre-judgment interest;
(2) that discretion applies where there are proceedings for the recovery of any money;
(3) an award of pre-judgement interest is compensatory in character, to compensate the claimant for having been kept out of the money which theoretically was due to him or her at the date the loss commenced; and
(4) a fourfold discretion arises in relation to s 32, being whether to order interest at all; if so, the interest rate to be applied; the amount on which interest accrues (which may be an amount less than the whole of the judgment); and, finally, over what period interest is to run.
3555 days (being from 1 June 2016 to 24 February 2026) - 1334 days
(1) An equitable lien, unlike an equitable charge, does not depend either upon contract or upon possession. It arises automatically by operation of law, under a doctrine of equity 'as part of a scheme of equitable adjustment of mutual rights and obligations', to secure the discharge of an actual or potential indebtedness.
(2) It would be difficult, if not impossible, to state a general principle which would cover the diversity of cases in which an equitable lien has been held to be created. The rules governing the circumstances in which equity has considered that justice requires the recognition of the existence of a lien are not confined to one narrow category and the lists may not be closed.
(3) The implication of an equitable lien may, in a particular case, be precluded or qualified by the agreement (express or implied) of the parties.
(4) An equitable lien is not a traditional mortgage and does not transfer any title to the property in question. Rather, an equitable lien may be enforced by a court order for the sale of the subject property, or by a court order for payment from the subject fund, as appropriate.
(5) An equitable lien does not depend on the ability to trace the contributions, and may operate provided there is a sufficient nexus between the contribution and the property over which the lien is implied.
(1) I have made findings of fact in my reasons for decision that the plaintiff contributed to the joint endeavour by selling the Armadale Property and transferring those funds to the defendant in two transfers.[17]
(2) I have made findings of fact that the defendant's contribution to the joint endeavour was obtaining a bank loan for, and purchasing, the Yokine Property.[18]
(3) I have made findings that the defendant used $104,863.23 of the first transfer for the purposes of purchasing the Yokine Property.[19]
(4) I have made findings that in the period between 10 December 2015 and 29 December 2015, the defendant used $216,000 of the second transfer to pay into her Commonwealth Bank home loan account for the Yokine Property to reduce that loan.[20]
(5) There was no evidence before me that any other property was purchased by the defendant using the first and/or second transfers.
(6) The defendant has had the exclusive possession and use of the Yokine Property since it was purchased.
Issue 4 - order for sale of the Yokine Property
If in any cause or matter relating to any land it appears necessary or expedient for the purposes of the cause or matter that the land or any part thereof should be sold, the Court may order that land or part to be sold, and any party bound by the order and in possession of that land or part, or in receipt of the rents and profits thereof, shall deliver up such possession or receipt to the purchaser or to such other person as the court may direct.
(1) The two transfers were made in 2014 and 2015, that is over 10 years ago. The defendant has had the benefit of the money, and exclusive possession of the Yokine Property for this entire period of time. The plaintiff has had neither.
(2) The orders seek an order for sale only after the defendant is first given the opportunity to pay the amount of money to the plaintiff within one month. This provides the defendant with an opportunity to raise the money by alternative means. The defendant has also been aware of my reasons for decision since 12 December 2025.
(3) The effect of the defendant's submissions is that she is not in a position to pay the amount of money sought by the plaintiff, save for the amount of $181,000 in the superannuation account, which she can only access if she changes jobs, which she says she can do. In these circumstances, I consider that if the defendant is unable to raise the money within a period of one month, it seems unlikely that the defendant will be able to raise the money in a reasonable time, and therefore the Yokine Property should be sold to relieve the conscience of the defendant and do justice to the plaintiff, without any further delay.
(1) be authorised to instruct a licensed real estate agent or auctioneer to conduct the sale;
(2) that the Yokine Property be sold by private treaty on the advice of the real estate agent;
(3) if the Yokine Property is not sold within four months, that it be sold by auction;
(4) that the Yokine Property be sold subject to the Real Estate Institute of Western Australia's General Conditions for the Sale of Land;
(5) that within 48 hours of receiving a written request, the defendant shall deliver up any documents, do all things necessary, and then sign all documents required for the purpose of the sale to the Public Trustee;
(6) in the event the defendant refuses or neglects to sign any documents, a registrar of the court is appointed to execute all documents in the name of the defendant and do all acts and things to give validity and operation to the documents;
(7) the proceeds of the sale be distributed in the following priority:
(a) first, to discharge any bank mortgage secured over the Yokine Property, and any costs to the bank as well;
(b) second, to pay all fees and expenses incurred in connection with the sale and settlement of the Yokine Property;
(c) third, in payment of the Judgment Debt; and
(d) fourth, any surplus remaining to be paid to the defendant;
(8) within 14 days of the sale of the Yokine Property, the Public Trustee shall cause to be filed an affidavit by the auctioneer or real estate agent or settlement agent exhibiting a statement certifying the result of the sale and the expenses incurred in connection therewith.
(1) it is often the case that a successful party will not succeed on every issue raised; and
(2) to attempt, in every case, an analysis of which party was successful on which issue would add uncertainty and complexity to the outcome of litigation, and add to the time and cost of costs arguments.
(1) Both of the plaintiff's claims arose out of the same set of facts. All the facts pleaded, and evidence led, about the various factors making up the claimed special disadvantage were facts that were also relevant to the joint endeavour claim. It is therefore not the case that the facts relevant to the special disadvantage claim can be easily separated from the facts underpinning the joint endeavour claim.
(2) The special disadvantage claim did not lead to discernible extra time or costs being incurred in the form of pleadings, evidence, submissions or time at re‑trial.
(a) the preparation and attendances of both counsel at the directions hearings on 16 November 2018 and 28 November 2018;
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> (b) the preparation and attendances of both counsel at the original trial; and
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> (c) the preparation of the written submissions opening and closing submissions.
Judgment Sum
(1) The defendant do pay to the plaintiff the sum of $365,717.43 plus interest calculated in the amount of $133,521.93 and judgment be entered in the sum of $499,239.36 (Judgment Sum).
(2) An equitable lien is hereby granted over the defendant's property at [Redacted] (Yokine Property).
(3) The lien shall secure the payment of the Judgment Sum and any post judgment interest calculated at the rate of 6% pursuant to section 8 of the Civil Judgments Enforcement Act 2004 (WA) and Regulation 4 of the Civil Judgments Enforcement Regulations 2005 (WA) (the Judgment Debt).
(4) If the Judgment Debt is not paid in full by 24 March 2026, then pursuant to Order 53 rule 2 of the Rules of the Supreme Court 1971 (WA), the Yokine Property is to be sold free from the encumbrances (if any) of such of the encumbrances as shall consent to the sale and subject to the encumbrances of such of them as shall not consent.
Sale of Property
(5) For the purpose of facilitating the sale of the Yokine Property, the Court makes the following directions:
(a) The Public Trustee shall have the conduct of the sale of the Yokine Property and be authorised to instruct a licensed real estate agent, settlement agent or auctioneer for that purpose.
(b) The Yokine Property shall be sold by private treaty according to the procedure determined on the advice of the licensed real estate agent appointed by the Public Trustee.
(c) In the event that the Yokine Property remains unsold for 4 months from the date of the instructions of a licensed real estate agent, the Yokine Property shall be sold by auction.
(d) The Yokine Property shall be sold subject to the Real Estate Institute of Western Australia's General Conditions for the Sale of Land.
(e) The reserve price for the Yokine Property shall be determined by agreement between the parties or, failing agreement, by a licensed valuer appointed by agreement of the parties or, failing agreement, by a licensed valuer nominated by the Chair of the Western Australia State Committee of the Australian Property Institute. The valuation by the appointed valuer will be final and binding on the parties.
(f) Within 48 hours of receiving a written request, the defendant shall deliver up any documents, do all things necessary, and sign all documents required for the purpose of the sale to the Public Trustee.
(g) In the event that the defendant refuses or neglects to sign any documents required to be signed by the defendant in compliance with the paragraphs of this order, a Registrar of this Honourable Court is hereby appointed to execute all documents in the name of the defendant and do all acts and things to give validity and operation to the documents.
(h) The remuneration of the auctioneer, settlement agent, valuers and licensed real estate agents to be fixed in accordance with the scale of charges of the Real Estate Institute of Western Australia Incorporated, where applicable, or otherwise remuneration shall be a reasonable market rate determined by the Public Trustee.
(i) The proceeds of sale be distributed in the following priority:
First, to discharge any bank mortgage secured over the Yokine Property and any costs to the bank of the sale;
Second, to pay all fees and expenses incurred in connection with the sale and settlement of the Yokine Property;
Third, in payment of the Judgment Debt; and
Fourth, any surplus remaining to be paid to the defendant.
(j) Within 14 days of the sale of the Yokine Property, the Public Trustee shall cause to be filed an affidavit by the auctioneer or real estate agent or settlement agent exhibiting a statement certifying the result of the sale and the expenses incurred in connection therewith.
(a) The orders made herein do not prevent the plaintiff from pursuing her legal rights to recover the Judgment Debt or any part thereof in accordance with the provisions of the Civil Judgments Enforcement Act 2004 (WA); and
(b) The plaintiff's rights in law or equity to recover the Judgment Debt or any part thereof remaining unpaid are preserved.
(7) Save as provided for above, the Freezing Orders made on 23 August 2018 as varied on 28 August 2018, 14 September 2018, 18 September 2018, 21 September 2018, and 29 July 2022 shall remain in effect until the Judgment Debt has been paid in full or the sale of the Yokine Property has been settled whichever is the sooner.
(8) The plaintiff provide a copy of these orders to the Commonwealth Bank of Australia within 48 hours of these orders being extracted.
Costs
(9) The defendant do pay the plaintiff's costs of the action to be taxed if not agreed, excluding the following:
(a) the matters the subject of order 6 of the orders made by the Court of Appeal on 29 July 2022; and
(b) the preparation of all pleadings prior to the Further Substituted Statement of Claim filed on 21 July 2023, for which there will be no order as to costs.
(10) The parties have liberty to apply on 48 hours written notice.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Henderson v Miles (No 2) [2005] NSWSC 867 [13] - [20].
[2] Muschinski v Dodds [1985] HCA 78; (1985) 160 CLR 583.
[3] Baumgartner v Baumgartner [1987] HCA 59; (1987) 164 CLR 137.
[4] Krajovska v Krajovska [2011] NSWSC 903; Krajovska v Krajovska [2011] NSWSC 1026.
[5] Henderson v Miles (No 2) [2005] NSWSC 867.
[6] Morris v Morris [1982] 1 NSWLR 61.
[7] Muschinski v Dodds [1985] HCA 78; (1985) 160 CLR 583, 598.
[8] Bathurst City Council v PWC Properties Pty Ltd [1998] HCA 59; (1998) 195 CLR 566 [42]; Giumelli v Giumelli [1999] HCA 10; (1999) 196 CLR 101 [10]; John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd; Walker Corp Pty Ltd v White City Tennis Club Ltd [2010] HCA 19; (2010) 241 CLR 1 [128].
[9] Meiners (by her next friend the Public Trustee) v Gunn [No 2] [2025] WASC 529 [549], [670] (Reasons for Decision).
[10] Province Leader of the Oceania Province of the Congregation of the Christian Brothers v Lawrence [2021] WASCA 77 [59] ‑ [60].
[11] Daniels v Daniels (By His Guardian Ad Litem the Public Trustee) [2008] WASCA 230 [76].
[12] See Lorebray Pty Ltd v Liddy (No 3) [2024] NSWSC 1257 [14].
[13] Hewett v Court [1983] HCA 7; (1983) 149 CLR 639, 644 ‑ 646 (Gibbs CJ), 663 ‑ 664 (Deane J), 653 (Wilson & Dawson JJ).
[14] Stephenson Nominees Pty Ltd v Official Receiver (1987) 76 ALR 485, 504 (Gummow J).
[15] Coad v Wellness Pursuit Pty Ltd (in liq) [2009] WASCA 68; (2009) 40 WAR 53 [41] - [43].
[16] Leros Pty Ltd v Terara Pty Ltd [1992] HCA 22; (1992) 174 CLR 407, 419.
[17] Reasons for Decision [42], [48], [671].
[21] M & H Allen Services Pty Ltd v Blue Sea Container Storage Pty Ltd [2025] VSC 463 [142] - [161].
[22] Latoudis v Casey [1990] HCA 59; (1990) 170 CLR 534, 543 (Mason CJ), 563 (Toohey J), 567 (McHugh J).
[23] Bowen v Alsanto Nominees Pty Ltd [2011] WASCA 39 (S) [5].
[24] Strzelecki Holdings v Jorgensen [2019] WASCA 96; (2019) 54 WAR 388 [50].
[25] Strzelecki Holdings v Jorgensen [2019] WASCA 96; (2019) 54 WAR 388 [51].
[26] Amaca Pty Ltd (formerly James Hardie & Co Pty Ltd) v Hannell [2007] WASCA 158 (S) [7].
[27] Hunter v City of Joondalup [2018] WASCA 166 (S) [9]; Smolarek v Roper [2009] WASCA 124 (S) [11].
(1985) 160 CLR 583
(1999) 196 CLR 101
(1983) 149 CLR 639
(1990) 170 CLR 534
(2010) 241 CLR 1
(1987) 76 ALR 485
(1992) 174 CLR 407
(2019) 54 WAR 388
(1987) 164 CLR 137
(1998) 195 CLR 566
(2009) 40 WAR 53