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[2026] NSWSC 1086
Supreme Court of NSW
2026-09-10
Kunc J
Original judgment source is linked above.
Source: NSW Caselaw (www.caselaw.nsw.gov.au). Converted to plain text by ZoeLaw. Not the official version.
Medium Neutral Citation: Sellar v Ryan [2026] NSWSC 1086
Hearing dates: 19 August 2025 – 22 August 2025; final written submissions 16 September 2025
Date of orders: 10 September 2026
Decision date: 10 September 2026
Jurisdiction: Equity
Before: Kunc J
Decision: Plaintiff entitled to judgment against estate for $128,700 and claim otherwise dismissed
Catchwords: CIVIL PROCEDURE — Pleadings — Pleading material facts — Effect of alleged representation must be pleaded — Actual words alleged to have been spoken are evidence and should not be pleaded
ESTOPPEL — Estoppel by representation — Detrimental reliance
SUCCESSION — Construction — General principles — “Principal place of residence” as at the date of death — Property over two lots and multiple dwellings
Legislation Cited: Conveyancing Act 1919 (NSW)
Succession Act 2006 (NSW)
Uniform Civil Procedure Rules 2005 (NSW)
Cases Cited: Allen v Snyder [1972] 2 NSWLR 685
Commissioner of Land Tax v Christie [1973] 2 NSWLR 526
Commissioner of Taxation v Miller (1946) 73 CLR 93
Fell v Fell (1922) 31 CLR 268
Kramer v Stone (2024) 281 CLR 484; [2024] HCA 48
Morris v Morris [1982] NSWLR 61
Pavey & Matthews Pty Ltd v Paul (1986-1987) 162 CLR 221
Plunkett v Bull (1915) 19 CLR 544
Saravinovska v Saravinovski (No 6) [2016] NSWSC 964
Shepherd v Doolan [2005] NSWSC 42
Warton v Yeo [2015] NSWCA 115
Watson v Foxman (1995) 49 NSWLR 315
Category: Principal judgment
Parties: Jessica Lee Sellar (Plaintiff)
Lindy Ryan (First Defendant)
Paula Lee Sellar (Second Defendant)
Darren William Sellar (Third Defendant)
Representation: Counsel:
J Mitchell (Plaintiff)
A Crossland/M Morgan (Second Defendant)
D Stewart (Third Defendant)
Solicitors:
Elliot Tuthill Solicitors (Plaintiff)
Walkom Lawyers (First Defendant)
Gavin Parsons and Associates (Second Defendant)
Russell Kennedy (Third Defendant)
File Number(s): 2024/51357
Publication restriction: Nil
This case concerns the estate of the late Allan Sellar, a waterfront property in Gymea Bay of which Allan was the sole registered proprietor, and three siblings: Paula Sellar, Dar****ren Sellar, and Jessica, known as Jessie, Sellar.
Paula and Darren, the second and third defendants respectively, are Allan’s children with his first wife, Carol. Jessie, the plaintiff, is the daughter of Allan and his late second wife, Tracey Sellar.
The first defendant, Ms Lindy Ryan is the executor of the estate. She has entered a submitting appearance.
Without intending any disrespect, the Court will refer to the family members by their given names.
The hearing took four days and included a view of the property. As I explain in [8] below, Jessie’s claims were not settled until the end of the hearing. There were further written submissions. Mr J Mitchell of Counsel appeared for Jessie. The first defendant entered a submitting appearance. Mr A Crossland of Counsel and Mr M Morgan of Counsel appeared for Paula, and Mr D Stewart of Counsel appeared for Darren. Because there was substantial commonality and adoption of submissions between Paula and Darren, in these reasons I will refer to Paula and Darren as the defendants and, generally, to their submissions without more specific attribution between them.
Except for some shares valued at approximately $10,000, the only asset in the estate is the property. At the time of Allan’s death, the property – known as 120 and 120A, XXXXX, Gymea Bay - comprised two adjacent lots (Lot 3 and Lot 643) on steeply sloping land down to the water. In these reasons, property means the land comprising those two lots. In addition to consisting of those lots, there are four buildings located on the property:
A four-bedroom dwelling close to the road (the family home) wholly on Lot 3;
A boatshed on Gymea Bay which straddles Lot 3 and Lot 643 (the parties accepted the boatshed is built over the high water mark);
A waterfront cottage on Gymea Bay which straddles Lot 3 and Lot 643 (the parties accepted the waterfront cottage is built over the high water mark); and
A standalone garage with home office attached, the latter having been built in 2009-2010 (the granny flat) (on Lot 3 and with its own letterbox marked 120A).
An essential piece of background in these proceedings is that Allan’s will (or his will) made on 26 September 1990 was the product of a written contract for mutual wills made between Allan and Tracey, which expressly prevented either of them changing their will without the consent of the other. Their wills were mutual wills leaving their estates to the survivor of the other, or in default to Paula, Darren and Jessie in equal shares. Tracey unexpectedly predeceased Allan. Allan never changed his will.
At the conclusion of the hearing (commencing at Tcpt, 22 August 2025, p 288(13) and ff), Mr Mitchell clarified that Jessie’s claim had three components by reference to the prayers for relief in the Second Further Amended Statement of Claim (SFASOC) filed that day.
The first component was the proper construction of the words “my principal place of residence as at the date of my death” in Allan’s will (construction question). This was the subject of these alternative prayers for relief:
“1. A declaration that:
(a) Either:
i. The residential premises on Lot 3 of Deposited Plan XXXX known as the “family home”, was [Allan’s] principal place of residence as at the date of [Allan’s] death (as that expression is used in [Allan’s] will dated 26 September 1990) and the remainder, including Lot 3 of Deposited Plan XXXX (aside from the family home) and Lot 643 in Deposited Plan XXXXXX was not [Allan’s] principal place of residence at the date of [Allan’s] death, or
ii. Lot 3 of Deposited Plan XXXX was [Allan’s] principal place of residence as at the date of [Allan’s] death (as that expression is used in Allan’s will dated 26 September 1990) and Lot 643 in Deposited Plan XXXXXX, was not [Allan’s] principal place of residence at the date of [Allan’s] death.”
It will be apparent from those prayers that Jessie contended that the “principal place of residence” for the purposes of Allan’s will was either the family home itself (to the exclusion of the rest of the property) or Lot 3 (but not Lot 643).
For the reasons which follow, the Court has determined that on the proper construction of Allan’s will:
(a) “my principal place of residence as at the date of my death” means “the building, including the property on which it stands, which is my usual or settled home at the date of my death”; and (b) finds that the family home, including the property comprising both lots, was Allan’s principal place of residence as at the date of his death for the purposes of Allan’s will.
The second component was a claim to 50% of the property (for the avoidance of doubt, the property comprising both lots). This claim was primarily based on 14 pleaded representations (two of which were alternatively characterised as alleged oral declarations of trust), nearly all of which Jessie alleges were made to her by Tracey – but legally attributable to Allan – in relation to Jessie receiving 50% of the property (representation case). It was contended that if she had a proprietary claim to 50% of the property, the other 50% would be administered in accordance with Allan’s will as properly construed.
The representation case was the subject of this prayer for relief:
“1. A declaration that:
(a) [the construction question – see [9] above] …
(b) That, as to the properties comprised in Lot 3 of Deposited Plan XXXX and Lot 643 in Deposited Plan XXXXXX (the “property”), a fifty per cent (50%) interest in those properties be held by the First Defendant (as trustee or chargor) subject to:
i. a trust; or
ii. a constructive trust; or
iii. an equitable charge,
in favour of the Plaintiff as beneficiary in respect to i or ii, or as chargee in respect to iii.”
For the reasons which follow, the representation case fails. The Court has accepted that the words alleged to constitute the representations were said to Jessie. However, in summary, as to each representation the Court has found some or all of that the representation was not conveyed by the words, was not proven to have been relied upon by Jessie and could not be attributed to Allan.
While the representation case has not been made out, it is important to note that the Court accepts that Jessie, to her great credit, made life changing decisions in the interests of her parents. I will briefly summarise the Court’s findings on this point.
The Court is satisfied that Tracey was the prime mover in the arrangements. Their essence became (after Tracey’s cancer diagnosis) that Jessie was to work in and receive the newsagency business owned by Tracey (which Jessie did and which she received), that the proceeds of that business were to support the family including the expenses of the property, that Jessie was otherwise to assist in the care of Allan (and then, in her illness, Tracey) and including so that Jessie could live rent free in the property (which she did). No part of the arrangement included an agreement or representation attributable to Allan so as to bind his conscience (and therefore the estate) to give Jessie her own half interest in the property on the death of both her parents.
Tracey did want to change her and Allan’s wills to give a greater share of the property to Jessie. That did not occur before Tracey’s death in November 2015. However, Allan was opposed to giving Jessie a greater proportion of the estate. In January 2018, Allan met with his solicitor to prepare a new will, but for reasons which are not the subject of evidence, that did not occur before Allan’s death in October 2018.
The third component was a series of money claims pressed in the alternative only if the representation case failed. These were the subject of these prayers for relief:
2. Alternatively to 1 (b), a declaration that the properties constituted in Lot 3 of Deposited Plan XXXX and Lot 643 in Deposited Plan XXXXXX be subject to an equitable charge for the amount of $314,029.58 plus interest. [This was referred to in argument as the “Morris v Morris claim”]
3. Alternatively to 1 (b), an order that the first defendant pay restitution for the unpaid work that the Plaintiff performed for the benefit of the Deceased in the amount of $793,038.90 and the contributions made by the Plaintiff to the property in the amount of $314,029.58 and testamentary expenses $37,557.00.
The facts leading up to the making of Allan’s will and as at the date of his death were not in dispute.
Allan married Carol in the 1970s. Paula was born to them in 1971 and Darren in 1973.
Allan and Carol became the registered proprietors of Lot 3 and Lot 643 as joint tenants on 11 January 1983 and 23 May 1983, respectively. Lot 3 extends from the road down to the high water mark of Gymea Bay. Lot 643 extends from the high water mark boundary with Lot 3 into Gymea Bay and was originally recorded in a Grant upon Purchase of Reclaimed Crown Lands.
The Court had the advantage of a view of the property and the parties agreed what was to be gleaned from those observations (see Tcpt, 21 August 2025, p 177). The family home and garage/granny flat are close to the road. The property then slopes sharply down to Gymea Bay. There are stairs and a winding path, both steep in places, from the family home down to the boatshed and waterfront cottage. Both of those structures are built over the high water mark. There is an inclinator from the family home down to the boatshed and waterfront cottage. With three people in it, the inclinator journey from top to bottom during the view took 3 minutes and 27 seconds.
On 27 November 1984, both lots were transferred to Allan as sole proprietor. The Court infers this occurred consequent upon Allan’s separation and subsequent divorce from Carol in or around 1983 to 1984. The two lots remained registered in Allan’s name alone until his death.
After separating from Allan, Carol took Paula and Darren to live in New Zealand, but returned after approximately a year and bought a home across the road from the property. Paula and Darren lived between the waterfront cottage and Carol’s home.
Jessie was born to Allan and Tracey in June 1987. The couple married in June 1988. Allan, Tracey, Jessie and, when they were there, Paula and Darren, lived in the waterfront cottage. The family home was rented out.
In around 1990 or 1991, Carol moved to Queensland; Paula moved out to an apartment in Cronulla; and, Darren moved into the family home.
In September 1990, Paula was 19, Darren was 17 and Jessie was 3 years old.
On 26 September 1990, Allan and Tracey executed a document entitled “Contract to Make Mutual Wills”:
“1. In consideration of TRACEY ANN SELLAR executing a Will in the form set out in schedule one of this agreement and agreeing to act in such a way that property of hers which is affected by that Will does devolve in the manner set out in the terms of that Will, unless I consent or my personal representative consents, in writing, to her acting otherwise, I, ALLAN WILLIAM SELLAR agree:
(a) to to(sic) execute forthwith a Will in the form set out in schedule 2; and
(b) to act in such a way that the property in my Estate which is effected by that Will does devolve in the manner set out in the terms of that Will, unless TRACEY ANN SELLAR or her personal representative consents in writing to my acting otherwise.
2. In consideration of ALLAN WILLIAM SELLAR executing a Will in the form set out in schedule 2 of this agreement and agreeing to act in such a way that property of his which is affected by that Will does devolve in the manner set out in the terms of that Will, unless I consent or my personal representative consents, in writing, to his acting otherwise, I, TRACEY ANN SELLAR, agree:
(a) to execute forthwith a Will in the form set out in schedule 1; and
(b) to act in such a way that the property in my Estate which is effected by that Will does devolve in the manner set out in the terms of that Will, unless ALLAN WILLIAM SELLAR or his personal representative consents in writing to my acting otherwise.”
“(a) as to my principal place of residence as at the date of my death UPON TRUST for such of my children [Paula, Darren and Jessie] as shall survive me and attain the age of thirty (30) years and if more than one as tenants in common in equal shares…
“(b) as to all my other property of whatsoever nature and wheresoever situate to my child [Jessie] as shall survive me and attain the age of thirty (30) years….”.
Clause 8 of Allan’s will provided that “I have specifically made no provision in this my Will for my former wife [Carol] as a property settlement has been finalised between us in the Family Court of Australia and she is in no way financially dependant upon me”.
Also on 26 September 1990, Allan signed a document entitled “Statement of Testamentary Intention” which stated:
“I DECLARE that I have executed my Last Will & Testament immediately prior to executing this document.
I have made disproportionate distributions of my Estate amongst my children PAULA LEE SELLAR, DARREN WILLIAM SELLAR and JESSICA LEE SELLAR because of the fact that JESSICA LEE SELLAR is the only one of my children living with me and that it is my belief that proper and adequate provision will be made for PAULA LEE SELLAR and DARREN WILLIAM SELLAR in the Estate of their own mother. Further, JESSICA LEE SELLAR is financially wholly dependant upon me and alternative financial support arrangements have been made by me during my lifetime for PAULA LEE SELLAR and DARREN WILLIAM SELLAR.”
The Court was not taken to any evidence of what assets Allan owned in September 1990 other than the property or to what the “alternative financial support arrangements” had been up to then for Paula and Darren.
Tracey died in November 2015. Allan was living in the family home at the time of his death in October 2018.
It was submitted for Jessie that Allan ate, slept and lived in the family home at the time of his death, not in the waterfront cottage, boatshed or granny flat, because they were used and occupied as exclusive residences by others at the time. The waterfront cottage and boatshed are in part located on a separate property, namely Lot 643, while the family home and granny flat are on Lot 3. It was submitted that because the waterfront cottage and boatshed were located precipitously away from the family home, it could not be said they were places Allan ate, slept, live, dwelt permanently or for even a considerable time at the time of his death. Nor could it be said Allan had even made casual or temporary visits at the time of his death. As such, it was submitted that Lot 643 should not be held to be Allan’s principal place of residence at the time of his death.
Mr Mitchell submitted that Allan’s principal place of residence at the time of his death was the family home alone, excluding Lot 643. It was accepted that the waterfront cottage and boatshed crossed over onto the title of Lot 3, and it was submitted an order could be made excising a small portion of the title for those structures. It was accepted that this submission imposed on the executor an obligation to attempt to effect a subdivision which would make the waterfront cottage and boatshed their own property, and obtain an easement for the inclinator.
Paula rejected the claim that the property as a whole was not Allan’s principal place of residence at the time of his death. Paula submitted that Jessie’s pleadings fail to clearly state this claim, and also fail to particularise how such a claim could be made out. As such, it was submitted Jessie should be kept to her pleadings.
Mr Crossland submitted that s 30 of the Succession Act 2006 (NSW) makes no real difference to the construction question because it provides that “A will takes effect, with respect to the property disposed of by the will, as if it had been executed immediately before the death of the testator”, while Allan’s will itself refers to residence at the date of death. It was also accepted that s 32 of the Act does not apply, meaning evidence of Allan’s intentions were inadmissible and the surrounding circumstances known to Allan, or which Allan should have known – the “testator’s armchair” – are instead the focus.
It was submitted the words “principal place of residence” do not have “one natural meaning” but a reading that the family home was separate from the land around it is an unnatural reading. Further, the corollary of the property as a whole being a ‘place’ is that it is not therefore two places such as one without access to the road while the other has no water access. This was submitted to be supported by the fact the property was purchased as a whole so that it could be used conjointly by Allan, who had complete possession and control. It was also submitted that at the time of making Allan’s will, Allan had other assets, which could assist in interpreting the will. However, the Court was not taken to any evidence of what those other assets were.
Mr Crossland also highlighted the fact that the boatshed and waterfront cottage both straddle the boundary between the two lots, which Jessie accepted in cross-examination. They are only accessible by an inclinator, predominantly built by Allan, and do not have the benefit of an easement. Further, the two lots operated as one street address, with the second street address (120A) being for the granny flat alone.
The practical consequences of the type of order sought were submitted to create a range of uncertainties, and Allan would have been aware of such difficulties. This was submitted to point against a finding he intended the family home to be excised from the lower portion of the property. Further, it was submitted the simple fact that Allan could not physically access the lower portion of the property due to his illness did not result in an inference it was considered separate, or that Allan’s right of access or exclusive possession on demand was diminished. It was also relevant that Allan had previously used the waterfront cottage to entertain.
The Court accepts Paula and Darren’s submissions.
The Court has two tasks: first, to construe the words “my principal place of residence as at the date of my death” and then to apply that construction to the facts.
The principles applicable to the interpretation of wills are set out in Fell. As the relevant principles were not in dispute between the parties, I respectfully adopt and apply this convenient and concise summary set out by Ward JA (as her Honour then was – and with whom Basten and Emmett JA agreed) in Warton v Yeo [2015] NSWCA 115:
35. Finally, I note that there was no dispute between the parties as to the principles to be applied in construing the will. To summarise those principles: the object of will construction is to ascertain the intention of the deceased as expressed in the will when it is read as a whole; extrinsic evidence is admissible, pursuant to s 32 of the Succession Act 2006 (NSW), to assist in the interpretation of the language used in the will if the language makes the will or any part of it meaningless or ambiguous either on the face of the will or in the light of the surrounding circumstances (though evidence of the testator’s intention is not admissible to establish any of those surrounding circumstances); and the “armchair principle” is to be applied such that the court is to put itself in the position of the testator and to consider all material facts and circumstances known to the testator with reference to how he is to be taken to have used the words in the will (Allgood v Blake (1873) LR 8 Ex 160 at 162).
(a) construes “my principal place of residence as at the date of my death” to mean “the building, including the property on which it stands, which is my usual or settled home at the date of my death”; and (b) finds that the family home, including the property comprising both lots, was Allan’s principal place of residence as at the date of his death for the purposes of Allan’s will.
The starting point is to note the context. “Principal place of residence” can mean different things depending on that context. In a tax statute it could mean a country. In a property duty statute it will mean an identifiable property. In this case it is a gift in a will, that is to say the purpose of the words is to confer a gratuitous benefit on the recipient.
The phrase is ambulatory. It is not a specific devise of the property itself (that is to say, it is not a gift of “my property at 120 XXX Rd, Gymea Bay” – 120A did not exist as a designation because the granny flat was not built until years after Allan’s will was made). The ambulatory nature of the expression is confirmed by the expression “as at the date of my death”, allowing for the possibility that it would not be the same property as Allan was living in at the time of making his will. In my respectful opinion, this means that the phrase cannot be construed to mean that Allan was intending to refer to the family home and the property itself.
While no party suggested the interpretation to which I have just referred, it is important to make the point. That is because, with respect, the arguments advanced for all parties on the construction seem to me to have been influenced to varying degrees by the happenstance that Allan was living at the property both when he made his will and when he died, such that how the various structures on the property were used over the years was referred to.
This influence was apt to mislead because it ignored both that, in applying the “armchair principle”, Allan’s will was to be construed by what was or ought to have been known to Allan as at the date it was made, and that construction and the application of the construction to the facts were two different tasks. In other words, events (including how the property was used) after the date of the will were irrelevant to the question of construction. On the other hand, how the property was being used in the period before and at the date of Allan’s death was relevant to the application of the construction.
The phrase refers to “place of residence” and not “residence”. A “residence” can mean a house. However, “place” suggests more than just a house to the exclusion of the land on which it stands.
Turning to the “armchair principle”, Allan must have known when he made his will, not just as a matter of general knowledge but also from his purchase of the property with Carol and its later transfer to him, that ownership of a house was transferred by acquiring the entire property on which it stood which was contained in a document of title. That knowledge is no less relevant for present purposes even if Allan had no knowledge of the legal distinction between fixtures and chattels or the technicalities of conveyancing.
Construction requires giving effect to the natural and ordinary meaning of words having regard to their context and purpose. To read “place of residence” in the context of a gift in a will as referring to a structure such as a house separate from the property on which it has been built is, in my respectful opinion, completely unnatural. The practical and conveyancing problems such a reading would cause cannot be ignored in determining the natural meaning of the words in the context of a will. How much curtilage around the building was intended to be allowed, what (if anything) could be subdivided, and how access from the road would be legally assured are only three of the complex issues that would arise.
All of these and other conveyancing problems are avoided by a natural reading of “residence” as including the property on which stood the house in which the testator lived. Far more express language about dividing whatever the relevant property was at the date of his death (including as to how it was to be divided) would be required for the Court to construe “principal place of residence” in a way that required attempts to be made by the executor to subdivide it.
Two other points should be made in relation to the construction question.
First, on the facts of this case, assigning a meaning to “principal” was not contentious because it was not suggested that Allan was actually living with any degree of regularity or permanency anywhere other than the family home at the time of his death.
Second, I have not overlooked that Allan intended to benefit Jessie disproportionately over her stepsiblings by leaving her all his other property, whatever it might have been. As I have already noted, the Court was not taken to evidence of what his other property was at the time he made his will. In the events which have happened, the property is the only asset of substance in the estate. This intention was presumably referred to in support of a minimalist interpretation of “place of residence”. However, even acknowledging that intention, it is insufficient to compel a result different to that the Court has reached.
Turning to the application of the Court’s construction to the facts, the Court has no hesitation in finding that the family home, including the property comprising both lots, was Allan’s usual or settled home at the date of his death. It is therefore Allan’s principal place of residence as at the date of his death for the purposes of clause 3 of his will. Quite apart from the fact that the waterfront cottage and boatshed are built over both lots, it would be a nonsense to excise Lot 643 from the property. The access Lot 643 provides to the Gymea Bay waterfront is an essential part of the amenity of Lot 3. The presence of the path, stairs and, most importantly, inclinator put beyond any reasonable doubt that the two lots form, as a matter of fact, the one functioning property with the family home as the dominant structural feature.
The hearing was attended by some confusion about how exactly Jessie put her case. With no disrespect intended to the author of the various iterations of Jessie’s pleading, it was the pleading that was both of a source and symptom of this confusion. It is therefore opportune for the Court to make some observations of general application which are derived not only from the experience of this case.
In my respectful observation, there is an increasing trend for a statement of claim to be indistinguishable from an affidavit and a set of submissions, in particular by allegations in cases such as the present which plead what the plaintiff recalls the defendant saying verbatim. Material facts are, at best, obscured and, at worst, absent. That is what occurred in this case, creating difficulties which were sought to be ameliorated, with incomplete success, in subsequent versions of the pleading.
This trend leads to pleadings which breach at least these rules in the Uniform Civil Procedure Rules 2005 (NSW):
14.7 Pleadings to contain facts, not evidence
Subject to this Part, Part 6 and Part 15, a party’s pleading must contain only a summary of the material facts on which the party relies, and not the evidence by which those facts are to be proved.
14.8 Pleadings to be brief
A pleading must be as brief as the nature of the case allows.
14.9 References in pleadings to documents and spoken words
If any documents or spoken words are referred to in a pleading—
(a) the effect of the document or spoken words must, so far as material, be stated, and
(b) the precise terms of the document or spoken words must not be stated, except so far as those terms are themselves material.
If these rules are followed, the factual and legal issues are clear, prolix pleadings are avoided, the parties’ evidence and issues for cross-examination are focussed, and at the end of the case the Court is assured that it understands and is adjudicating the issues which the parties have presented for determination to quell the dispute between them.
In a case alleging a proprietary estoppel based upon representations, the material facts begin with who made the representation, to whom it was made, when and how it was made (oral or written, express or implied) and the effect of the representation. The words used in making the representation are matters of evidence and should not appear in the statement of claim. The pleading should make clear whether the case is one of acquiescence or encouragement. Having pleaded the effect of the representation, the other elements of the cause of action should then be pleaded in a logical order:
That the defendant expected or intended the plaintiff would rely on the representation or, alternatively, that a reasonable person in the defendant’s position would have had that expectation or intention;
That by reason of the representation and in reasonable reliance upon it the plaintiff did something;
That the plaintiff would not have done that in the absence of the representation;
That if the defendant were allowed to resile from or deny the representation, the plaintiff would suffer detriment and giving particulars of that alleged detriment.
The matters to which I have just referred appear, for example, in a case on which all parties relied, being the judgment of the plurality in Kramer v Stone (2024) 281 CLR 484; [2024] HCA 48 (citations omitted):
[36] In Waltons Stores (Interstate) Ltd v Maher, Brennan J set out six requirements for an equitable estoppel which, as senior counsel for David submitted and as explained below, were formulated at a level of generality sufficient to include an equitable estoppel which arises by reason of encouragement by the making of a promise as well as an equitable estoppel which arises by reason of acquiescence. When the focus is only upon an equitable estoppel which arises by reason of encouragement from a promise, the elements that must be satisfied can be refined as follows
[37] First, as with the requirement for representations in estoppels by representation generally, there must be a “clear and unequivocal” promise made by the party estopped (the promisor) to the party who relies upon the promise (the promisee).Of its nature, the clear and unequivocal promise will generally concern some representation about future conduct.
[38] Secondly, a reasonable person in the promisor’s position must have expected or intended (or the promisor actually did expect or intend) that the promisee would rely upon the promise by some action, omission or course of conduct.This is what is meant by references, including throughout this appeal, to the promise being an “encouragement” for the promisee to act.
[39] Thirdly, the promisee must have relied upon the promise by acting or omitting to act in the general manner that would have been expected. In order to establish reliance, it is ordinarily necessary for the promisee to show not merely (2024) 421 ALR 106 at 116 that the promise was one factor taken into account in motivating the promisee’s action or omission but that the promisee would not have acted or omitted to act in the absence of the promise. In other words, it must usually be shown that the promisee’s reliance “made a difference to [the promisee] taking the course of action or inaction”.
[40] Fourthly, the consequence of the promisee’s reliance must be that the promisee will suffer detriment if the promise is not fulfilled, in the sense that the promisee will be left in a worse position, as a consequence of reliance upon the promise, than if the promise had not been made. Unlike the recognition of a gift, or the enforcement of a testamentary promise under a valid will, or the enforcement of a contractual promise, it is the existence of detriment arising from reasonable reliance upon an unfulfilled promise that completes the recognition of the estoppel and moulds the remedial response. As this Court has repeatedly held, “[i]t is not the existence of an unperformed promise that invites the intervention of equity but the conduct of the plaintiff in acting upon the expectation to which it gives rise”. Hence, the relief is “moulded accordingly to prevent th[e] detriment”. In cases where the detriment suffered by a plaintiff is “a relatively small, readily quantifiable monetary outlay on the faith of the [defendant’s] assurances” then, apart from interest, the likely equitable relief ordered will be compensation in the amount of the monetary outlay. By contrast, where the detriment suffered “involves life-changing decisions with irreversible consequences of a profoundly personal nature”, the likely equitable relief will be to require fulfilment of the assumption upon which the plaintiff acted, such as by a conveyance of rights, or an assessment of the monetary value of the assumption.
[41] Once these elements are satisfied, it is commonly said that conscience requires that A redress the detriment suffered by B. As has been repeatedly emphasised by this Court, the description of circumstances as unconscionable “is to characterise the result rather than to identify the reasoning that leads to the application of that description”.
“24. During the course of the Plaintiff’s adulthood from 2009 onwards she was promised a share in the family home and that she could live there for her lifetime.
- In early 2009 Tracey and the Deceased required the Plaintiff to give up her teaching career and take a more active role in the management of the Newsagency business so that Tracey could care for the Deceased who was frail and required daily treatment for cancer. Tracey said to the Plaintiff, in the presence of the Deceased whilst all three were sitting at the dining room table at the family home:
We can work together for many years to come. You will always have this house. I can live in the granny flat. You will get most of this property when your father goes.
The representation was alleged to be made by Tracey to Jessie that the property was hers in a general sense and that she would be conveyed ownership of most of the property when the Deceased died (Representation 1).
By his omission to correct Representation 1 at the time of its making or subsequently, the Deceased made a representation in the form of Representation 1 or alternatively acquiesced in the making of Representation 1 thereby indicating his agreement to its being made by Tracey and agreement to the representation (Representation 2).
26. By their marriage, their entry into mutual wills, their intertwining of business and familial affairs referred to in paragraph [21], the illness of the Deceased, his presence at the occasion referred to in paragraph [25] and his omission to correct Representation 1, Tracey made Representation 1 on behalf of, and with the agreement of the Deceased (Representation 3).
27. In 2014 Tracey said to the Plaintiff, while they were both working at the Newsagency:
We have to keep the newsagency. You will need to keep working in it. The newsagency is paying all the bills for this house and all our medical expenses. It will be worth it. This house will be yours when we are gone.
This was a representation made by Tracey to the Plaintiff that she would get the family home or alternatively the property when the Deceased and Tracey died and she needed to keep working in the Newsagency in order to pay the bills for the house and the Deceased’s and Tracey’s medical expenses, thereby inferring that the family home or alternatively the property were in jeopardy of being lost if she did not continue to work in the Newsagency and reaffirming Representations 1, 2 and 3 (Representation 4).
By their marriage, their entry into mutual wills, their intertwining of business and familial affairs referred to in paragraph [21], the illness of the Deceased described in paragraph [28] below, and the broad consistency with Representations 1, 2 and 3, Tracey made Representation 1 [I have read this as an error and that it should be “4”] on behalf of, and with the agreement of the Deceased (Representation 4A).
…
30. In early August 2015 Tracey was diagnosed with stage 4 lung cancer.
31. At around this time Tracey said to the Plaintiff in the presence of the deceased and with his agreement:
Jessie, I can’t keep working in the newsagency. You need to keep the newsagency going. I am going to transfer my shares to you so you can keep running it. You will be the sole shareholder of the business so you can keep running it. It will be enough to maintain the house and your father won’t need to move.
31A This was a representation made by Tracey to the Plaintiff that was consistent with Representation 4 and 4A that she needed to keep working in the Newsagency in order to pay the bills for the house and the Deceased’s and Tracey’s medical expenses, thereby reaffirming that the family home or alternatively the property were in jeopardy of being lost in some unspecific way if she did not continue to work in the Newsagency, which in turn would affect her interest in the property communicated by Representations 1, 2, 3 and 4 (Representation 5).
31B By his omission to correct Representation 5 at the time of its making or subsequently, the Deceased made a representation in the form of Representation 5 or alternatively acquiesced in the making of Representation 5 (Representation 6).
31C By their marriage, their entry into mutual wills, their intertwining of business and familial affairs referred to in paragraph [21], the illness of the Deceased described in paragraph [28], his presence at the occasion referred to in paragraph [31] and his omission to correct Representation 5, Tracey made Representation 5 on behalf of, and or with the agreement of The Deceased (Representation 7).
32. At around this time Tracey said to the Deceased, in the presence of the Plaintiff:
I have worked hard for this house. I want my half of this house to go to Jessie.
The Deceased replied:
OK Wal. [Allan’s affectionate name for Tracey]
32A This was a representation made by Tracey to the Deceased and the Plaintiff was privy that she had an interest in the property as to half and that she wanted her half interest to be conveyed to Jessie (either inter vivos or as a testamentary gift), a proposition to which the Deceased agreed (Representation 8).
32B By his assent to Representation 8 at the time of its making, the Deceased made a representation in the form of Representation 8 that a half interest would be conveyed to Jessie (either inter vivos or as a testamentary gift) and or alternatively acquiesced in the making of Representation 8 (Representation 9).
32C By their marriage, their entry into mutual wills, their intertwining of business and familial affairs referred to in paragraph [21], the illness of the Deceased described in paragraph [28]), his presence at the occasion referred to in paragraph [32] and his omission to correct Representation 8 and positive assent to it, Tracey made Representation 8 on behalf of, and or with the agreement of The Deceased (Representation 7).
Tracey made Representation 8 on behalf of, and or with the agreement of The Deceased (Representation 10).
…
38. On or around 2016 the Deceased said to the Plaintiff:
I will keep your mother’s dying wish. I will give you your mother’s half of the house.
38A This constituted an oral declaration of trust over a half interest in the property, constituting the Deceased, as legal owner of the property, as trustee of the property, the trust property being the property as to a fifty percent interest, the plaintiff as beneficiary and a personal obligation as to the trust property, namely that the trust property was beneficially held by the plaintiff (Trust 1).
38B. Alternatively, this was a representation made by the Deceased to the Plaintiff that he would give the plaintiff an interest in the property as to fifty per cent (inter vivos or testamentary), that Tracey had, prior to her death a half interest in the property and affirming Representation 8, 9 and 10 (Representation 11).
39. In October 2016 the Deceased said to the Plaintiff:
Jessie, you can’t leave me here on my own, I don’t want to go to a nursing home, please stay here. You know you will own most of this house when I am gone. You and Joseph (Jessie’s husband) can live here together with [your son].
39A This was a representation made by the Deceased to the Plaintiff affirming Representation 11 (that he would give the plaintiff the interest in the property as to fifty percent, that Tracey had, prior to her death held) and a further interest beyond the fifty per cent would also be given by the Deceased such that she would hold “most” of the property and otherwise affirming Representation 8, 9 and 10 (Representation 12).
…
42. Sometime after October 2016 the Deceased said to the Plaintiff:
I never want to sell the family home. The best idea would be if you live in the main house, Darren lives in the waterfront cottage and Paula lives in the granny flat. This will honour your mother’s wishes because you would have most of the property but Darren and Paula would also be looked after.
42A This was a representation made by the Deceased to the Plaintiff affirming Representation 11 and 12 that he would give the plaintiff the half interest in the property previously held by Tracey plus a further interest beyond the fifty per cent such that she would hold “most” of the property and otherwise affirming Representation 8, 9 and 10 (Representation 13).
43. Subsequently the Deceased said to the Plaintiff, sometime after visiting his solicitors at MCW Lawyers:
I have followed your mother’s wishes. I gave you half of the estate and the remaining half is to be shared between you, Darren and Paula.
43A. This constituted a trust in the same terms as Trust 1 (Trust 2).
43B Alternatively, this was a representation made by the Deceased to the Plaintiff that he gave the plaintiff an interest in the property as to fifty per cent and affirming Representations 8, 9, 10, 11 and 12 (Representation 14). …”
Jessie, Paula and Darren all filed affidavits. The case primarily turned on Jessie’s evidence including a lengthy cross-examination. Darren was cross-examined briefly. Paula was not required for cross-examination.
Jessie also relied on an affidavit of Ms Julieanne L****owe. Ms Lowe was cross-examined.
Ms Lowe worked in the newsagency between 2005 (when she was 16 years old and before it was owned by Tracey) to 2014. She described herself as being a friend of both Tracey and Jessie. She continued to visit the newsagency after she had stopped working there. She deposed to a conversation in October or November 2015, after she had become aware of Tracey’s cancer diagnosis, when Tracey discussed Allan and Tracey’s wills and said:
“Allan and I are trying to get our wills done so they reflect my wishes. We are seeing, Robbert Fox [their solicitor]. We want [the property] to be held within the family for three generations and not be sold.
I want to protect Jessie and Noah and Alex [Paula’s son]. I always want them to have somewhere to live. I don’t want Michael [Jessie’s ex-partner and Noah’s father] to benefit from the property after I die.
I plan to give my assets entirely to Jessie.
I am frustrated that we have never updated our wills, but I always thought Allan would die first. …” (emphases added)
I accept Ms Lowe as a reliable, independent witness and find that she did have that conversation with Tracey. I also find that the proposed testamentary changes referred to were driven by what Tracey wanted. Ms Lowe was asked in cross-examination whether Tracey explained how she was going to both protect Jessie, Noah and Alex, and still give all her assets to Jessie. Ms Lowe accepted the only explanation Tracey gave was Tracey was going to hold the property in the family for three generations.
I also accept, and find accordingly, four further pieces of evidence given by Ms Lowe:
That at some time between Tracey’s and Allan’s respective deaths, Ms Lowe asked Jessie “Is working in the newsagency still what you want to do long term?”, to which Jessie replied “I don’t feel like I have a choice. I have closed all my businesses so I could help in the newsagency”.
That this was Ms Lowe’s state of mind: “From many conversations I had with Tracey and later with Jessie, I came to know that Jessie had previously closed her own business to support the newsagency. Jessie had her own career in teaching and judging gymnastics, and she closed her teaching business to support running the newsagency.”
Jessie never told Ms Lowe of any promises made to her by her parents in relation to the property (Tcpt, 20 Aug 2025, p 153(14)).
Tracey never told Ms Lowe of anything she (Tracey) had said to Jessie about her (Tracey’s) will (Tcpt, 20 Aug 2025, p 153(10)).
Darren also relied upon an affidavit from Mr Ronald Nunn. Mr Nunn met Allan and Tracey in 1986 or 1987. He became a close friend of Allan’s through a shared love of golf. He was not required for cross-examination. The Court accepts his evidence, which forms the basis of the Court’s findings in [92] and [96] below.
I will next set out the Court’s findings of fact in relation to the representation case. Many of these were not seriously in dispute or appear from contemporaneous documents. So that they may be seen in context, in what follows I have included the words alleged to constitute the representations as allegations. Findings in relation to the representations are made in [130] and following below. What follows should also be read with the Court’s findings concerning the making of Allan’s will set out in [21] to 34] above.
In 1992, the foundations for the renovation of the family home were laid. Allan and Tracey undertook various works on the property over many years. It was a labour of love for them.
On 1 October 1992, Allan granted a mortgage over the property to ANZ Bank securing a loan of $200,000.
Between 1993 and 2003 Allan operated a small supermarket in Kurnell.
Jessie was a gymnastics coach in 2002 and 2003 and a sports coach in 2004 to 2008. In 2005 Jessie started tertiary studies and later that year purchased L’Elfin Gymnastics. Between 2005 and 2008 she attended the Australian College of Physical Education.
Between 2003 and 2006, Tracey owned and operated a homewares store in Sutherland.
In June 2006, the mortgage over the property was increased to $300,000 to finance the building of the granny flat.
On 2 May 2007, P A Sellar was incorporated with Tracey as the sole director, secretary and shareholder as the vehicle to purchase the newsagency business known as the Sutherland Newsagency. It was at this time that Tracey and Allan met Ms Lowe (see [69] above). In May 2007, Ms Lowe was 18 years old.
Allan was diagnosed with Parkinson’s disease in 2007 and with prostate cancer in 2008.
In 2009, Jessie was working as a casual teacher, completing her tertiary qualification, running her gymnastics business across four locations and helping out in the newsagency. In July 2009, Jessie attained a Bachelor of Education (Physical and Health Education).
Jessie alleges that one evening in 2009 at the dining table of the family home Tracey said to her in the presence of Allan “We can work together for many years to come. You will always have this house. I can live in the granny flat. You will get most of this property when your father goes.” (Representation 1).
In March 2013, Tracey caused P A Sellar to purchase the commercial building where the newsagency operated. The purchase price was $962,500.
It was also in 2013 that Allan’s mobility became impaired as a result of his Parkinson’s disease.
Jessie alleges that in 2014, while she and her mother were both at the newsagency, Tracey said to her “We have to keep this newsagency. You will need to keep working in it. The newsagency is paying all the bills for this house and all our expenses [I note that Jessie’s affidavit does not say “medical expenses as pleaded] . It will be worth it. This house will be yours when we are gone.” (Representation 4).
Jessie became pregnant in 2014 and her son Noah was born the following year. Her relationship with Noah’s father ended shortly after the child’s birth.
In August 2015, Tracey was diagnosed with Stage 4 lung cancer.
It is around this time Jessie alleges Tracey said to her in the presence of Allan, “Jessie, I can’t keep working in the newsagency. You need to keep the newsagency going. I am going to transfer my shares to you so you can keep running it. You will be the sole shareholder of the business so you can keep running it. It will be enough to maintain the house and your father won’t need to move” (Representation 5).
Jessie also alleges that during 2015 Tracey said to Allan in Jessie’s presence, “I have worked hard for this house. I want my half of this house to go to Jessie.” It is alleged Allan replied, “OK Wal”, using the affectionate name by which Allan referred to Tracey (Representation 8).
On 9 September 2015, Jessie was appointed as a director of P A Sellar. Tracey remained a director until her death.
Some time prior to Tracey’s death, Allan told Mr Nunn that Tracey had wanted to give “half the house” to Jessie (as Allan and Tracey’s daughter) and the other half to be shared equally between Darren and Paula. Allan told Mr Nunn that he (Allan) was “not keen on this at all”.
As I have set out in [69] above, the Court finds that in late October or early November 2015 Tracey said to Ms Lowe:
“Allan and I are trying to get our wills done so they reflect my wishes. We are seeing, Robbert Fox [their solicitor – see [97] below]. We want [the property] to be held within the family for three generations and not be sold.
I want to protect Jessie and Noah and Alex [Paula’s son]. I always want them to have somewhere to live. I don’t want Michael [Jessie’s ex-partner and Noah’s father] to benefit from the property after I die.
I plan to give my assets entirely to Jessie.
I am frustrated that we have never updated our wills, but I always thought Allan would die first. …”
Tracey died on 16 November 2015. It is convenient to observe at this point that under Tracey’s will, executed at the same time as Allan’s will, Tracey’s share in P A Sellar (which operated the newsagency and owned the building in which the newsagency was located) passed to Allan.
Jessie alleges that after her mother’s death she (Jessie) paid:
$100,000 to finish the renovations to the family home so that Allan could stay there;
For the family home to be repainted internally and for minor repairs;
For the outgoings and expenses of the property, including mortgage repayments; and
For Allan’s expenses, including medical expenses.
On at least two occasions after Tracey’s death, Allan said to Mr Nunn on the topic of what he wanted to happen when he (Allan) died, “Now I can split the house three ways to each of the kids”.
At the time of Tracey’s death, her and Allan’s solicitor was Mr Robbert Fox. The evidence before the Court included a “pre billing guide” from Mr Fox’s firm recording a 12 minute “telephone attendance on Jess Sellar” on 7 December 2015. Jessie accepted in cross-examination that she had telephoned Mr Fox (Tcpt, 19 August 2025, p 74(32)) and that both she and Allan were giving instructions to Mr Fox (Tcpt, 19 August 2025, p 77(29)).
There was also a file note of Mr Fox’s dated “7/12” which no one disputed had to be 2015. While the file note does not record with whom it purports to record a conversation, by reason of the pre-billing guide and Jessie’s admission that she had telephoned Mr Fox, the Court finds it is a record of the conversation between Mr Fox and Jessie.
The file note records:
“Allan wants to change will?
- cant
House is his alone - maybe worth 3.5-4 mil
Shop –1.25? --Mge in total 1.5
Jess will be 29 June next year
Lyndy Ryan --Aunt -- no problem
Bank A/C etc all joint
Coy shares?
Allan’s health may plateau
--possibly in decline”
Based on that file note, the Court finds that as at 7 December 2015, Jessie knew that Allan could not change his will. While not referred to in the file note, it seems to me probable, and the Court finds, that Mr Fox would have explained why Allan could not change his will by referring to the Contract.
Mr Fox’s “pre billing guide” describes the “matter” as “Mr Allan William Sellar Resolution of the Estate of the Late Tracey Ann Sellar” and the “debtor” as Allan. He was the executor under Tracey’s will. The Court therefore finds he was Mr Fox’s client and the person referred to as the “client” in the entry for 10 December 2015, being one of two further relevant entries:
(a) A 54 minute entry on 10 December 2015 “Conference with client to take general instructions in relation to the resolution of the estate”; and (b) A 30 minute entry on 11 December 2015 “Peruse consider full effect of Will and informal advice to Jess”.
“RE: RESOLUTION OF THE ESTATE OF THE LATE TRACEY ANN SELLAR
SUBJECT: MEETING OF 10 DECEMBER 2015
The debt owed over the house is at XX Road, Gymea Bay is $336,000.00 and the debt over the business is $1.5 million – about $600,000.00 over the business and the rest over the building. Presently Tracey’s Will left the house to be divided into three and left everything else to Jess, I guess that means that all of the furniture and the shares in the company which runs the newsagency. Of course the difficulty is when Allan dies which may be sooner rather than later because he has Parkinson’s disease Jess is going to have to buy her two stepsiblings out. That is going to be a serious problem because we have to work on the assumption that the land at X Road has two houses and is having a granny flat built on top of it all with Council approval is worth somewhere between $3 and $4 million.
No one has yet told the bank that Tracey has died and Tracey was busily trying to work out arrangements where the debts came off the house and all finished up against the business but that does not seem to me to be very clever, it would be much smarter if we got much more of the debt against the house.
I suppose if we told the bank that Tracey has died and we offered to change the security around so that Allan is the prime debtor for say $1.8 million as charged over the house and land and the repayment of that is guaranteed by Jess we may be in much better shape because that way Jess running the business could make the repayments but bring about a situation where the net amount payable to the stepsiblings is a lot less.
I said I would give a bit of thought as to whether or not we can break their mutual Will and in that regard Ian suggested I talk to a lady by the name of Therese Catanzariti.”
The “pre billing guide” refers to Ian Connor as another solicitor involved in the matter and the Court infers he is the “Ian” referred to in that file note. The Court takes judicial notice that Ms Catanzariti is a barrister specialising in wills and estates. There is no evidence as to whether her advice was ever sought.
There was some dispute as to whether Jessie attended the conference on 10 December 2015, although Jessie accepted that it was likely that she had attended that conference (Tcpt, 19 August 2025, p 78(23). It is not necessary to come to a concluded view on this because the Court finds that the “informal advice” given to Jessie on 11 December 2015 (whether by phone or in person) was to the effect of the file note set out in [102] above. Jessie accepted that “it could very well be” (Tcpt, 20 August 2025, p 118(4)). While Allan may have been Mr Fox’s client, Jessie clearly had an interest in that advice and the question of whether the Contract could be broken. So much is apparent from the fact that the advice is predicated on finding a solution that favoured Jessie by reducing how much she would have to pay out her stepsiblings when the property passed to all three of them under Allan’s will.
Based on the matters set out in [97] to [104] above, the Court finds that irrespective of whatever, if anything, she had been promised, by 11 December 2015 Jessie knew that Allan’s will could not be changed and that she would be inheriting the property in equal shares with her stepsiblings upon Allan’s death. Significantly, there is nothing in what Mr Fox has recorded of his interactions with Jessie that she told him about any of the representations that she alleges had been made to her up to that time. I have no doubt that if she had, Mr Fox would have recorded it as instructions of potential significance. Accordingly, the Court also finds that Jessie did not raise the representations with Mr Fox during her discussions with him in December 2015.
The Court draws the inferences in the preceding paragraph with more confidence because it accepts the defendants’ submission that a Jones v Dunkel inference should be drawn against Jessie for her unexplained failure to call evidence from Mr Fox, notwithstanding that he had produced his file and transcribed his file notes. Her knowledge of whether Allan could change his will and, as she asserted under cross-examination – assertions the Court does not accept – that she told Mr Fox about the representations, were both issues in the proceedings on which Mr Fox could be expected to cast light. As a result of that unexplained failure, the Court infers that his evidence would not have assisted her case. I record for completeness that I do not consider the fact that his file was in evidence is a sufficient explanation for Jessie’s failure to call Mr Fox.
In 2016, Jessie qualified as an international gymnastics judge.
Also in 2016, Jessie alleges Allan said to her, “I will keep your mother’s dying wish. I will give you your mother’s half of the house” (Trust 1 and Representation 11).
In October 2016, Jessie commenced a relationship with Mr Joseph Poulos. Jessie alleges that in the same month she had this conversation with Allan:
Jessie: “Dad, I think I would like to move out and live with Joseph and Noah. Jospeh and I will somehow keep paying the household expenses and I will look after you and Darren”.
Allan: “Jessie, you can’t leave me here on my own. I don’t want to go to a nursing home, please stay here. You know you will own most of this house when I am gone. You and Joseph can live here together with Noah” (Representation 12).
Sometime after October 2016, Jessie alleges Allan said to her, “I never want to sell the family home. The best idea would be if you live in the family home [Jessie’s affidavit uses these words, the pleading alleges “main house”] , Darren lives in the waterfront cottage and Paula lives in the granny flat. This will honour your mother’s wishes because you would have most of the property, but Darren and Paula would also be looked after.” (emphasis added) (Representation 13).
Mr Fox’s file includes his notes of an attendance, but not with whom, dated 24 January 2017. I find on the basis of the content that it was with Allan. I interpolate that there seems to me to be a real likelihood that this is an erroneous dating (common in the first weeks of a new year) and should be 24 January 2018. This is because the note sets out instructions for a will and the letter of 6 February 2018 set out in [114] below refers to a meeting on 24 January 2018. It would be a large coincidence that there were meetings on 24 January in two years. However, because Mr Fox did not give evidence, so this possibility could not be put to him, the Court adheres to the chronology on the face of the document, which records that Allan wanted his three children to receive the property in equal shares and Jessie to receive P A Sellar:
First page:
24/1/2017
Exor
Lindy Jean Ryan – XX Street, X
Leave between 3 kids
Paula Lee Wood (1)(22) “Alex”
Darren William Sellar
Jessie Lee Sellar (21/2) “Noah” – Lindy
Equally
Check company records – Jess is to have the lot
Next page [it is not clear whether this and the next pages relate to the same attendance, but there is no further dating until the attendance referred to in X below]:
Mortgage debt
Attorney – Lindy
Grant Perry (nephew)
Engadine
X Street
Engadine
Next page:
End
Grant
Not the kids
Take it away from the,
Lindy has right to turn off machine
Next page:
Jess is entitled to Tracey’s input
Premises at Suth
$400,000.00 borrowed
Unit – Darren’s name Jess
Loan for unit
Tracey bought Paula out
Next page:
XX Ave/Acacia [not the property] – lefthand side
Unit numbers
On 28 August 2017, Jessie signed and lodged a Form 484 with ASIC, notifying of the transfer of Tracey’s one ordinary share in P A Sellar to Jessie.
Sometime in 2017 or 2018, Jessie alleges that following a visit to his lawyers, Allan said to her, “I have followed your mother’s wishes. I gave you half of the estate and the remaining half is to be shared between you, Darren and Paula” (emphasis added) (Trust 2 and Representation 14). The Court finds that in saying this, Allan was not telling the truth to Jessie.
On 6 February 2018, Mr Fox sent this letter to Allan with the subject matter “WILL”:
“I refer to our meeting of 24 January 2018, I must apologise for my delay inn responding. I have your Power of Attorney and Enduring Guardianship Appointment in hand, but I cannot proceed much further with the Will until I have a better indication of the way the financials were organised.
I note that you wish to leave your interest in P A Sellar Pty Ltd to Jess. That gift would, of course, include the title to the real estate but that title is mortgaged to ANZ Bank.
I seem to recall Tacey’s instructions at the time of the purchase to indicate that the bank also held security over the title to the [property].
That being the case, I need you to give some thought to how much of the debt is to go with the title to the shop, and how much of the debt is to go with the title to the [property].
Lastly, I recall there being mention of a home unit in President Avenue, which was thought to be in Jess and Darren’s names; I think that should be checked, so I need the unit number as well as the strata plan number. Both of these can be found on any strata levy statement relating to the property.
I look forward to your response.”
Will
Allan – XXXX XXXX [a phone number]
House put in trust
P.A. Sellar Pty Limited – Jess is sole director
P.A. and Gship Will
Mail it to [the property].
First page:
1/3
Allan in cannabis oil trial
Delivery [illegible] up a fortnight ago
No cannabis
Really changed his affliction
Will receive new stuff tomorrow
Darren owes $120,000.00 on unit – but Jess actually paid for half
Home loan on [the property] is $322,000.00
Sutherland building is $879,000.00
Business $613,000.00
Next page:
Jess wants to sell building and business
Bank suggests business max $420,000.00
min $[2 or 3]80,000.00
R-EST - $1,400,000.00
If both sell maybe clear $1,700,000
But debt is $1,500,000
So Jess gets maybe $100,000
or $200,000 max
Suggested that we work out what the land is worth and then apportion the whole debt
Pro rata
That way Jess will get the benefit of Allan’s and Tracey’s hard work over the last years when they ran as a team.
On 29 September 2018, Allan suffered a stroke.
Allan died on 9 October 2018 with his will unchanged. There was no breach of the Contract.
On 18 April 2019, probate of the estate was granted to Ms Ryan.
In late November 2019, P A Sellar sold the building in which the newsagency was located for $1,630,000.
On 2 December 2019, the newsagency was sold for $75,000, with a further $20,000 for trading stock.
The proceeds of the sales referred to in the preceding two paragraphs were applied to discharge the mortgage over the land on which the newsagency was located and to reduce the mortgage debt over the property.
On 25 May 2023, Jessie lodged a caveat over the property. The caveat claimed an estate in fee simple by virtue of a “beneficial interest in deceased estate” dated 18 April 2019. This was the date probate had been granted to Ms Ryan. The claim was described in the caveat as “an equitable interest as charge of an estate in fee simple”.
On 1 February 2024, Ms Ryan served Jessie with a lapsing notice.
Jessie commenced these proceedings by summons filed on 9 February 2024.
On 20 February 2024, the title to the property was transmitted to Ms Ryan as executor of Allan’s will.
I have framed this question deliberately. It turns on whether the Court accepts Jessie’s evidence. My overall impression of Jessie as a witness after lengthy cross-examination by two counsel was that she adhered to her evidence and that she was doing her best to tell the truth as she recalled it. That conclusion does not mean that the Court accepts all of her evidence without qualification.
In assessing her credibility and approaching the Court’s task of fact finding I have applied the principles which I set out in Saravinovska v Saravinovski (No 6) [2016] NSWSC 964 at [464] to [473]. I have borne in mind the oft-cited statement of McClelland CJ in Equity in Watson v Foxman (1995) 49 NSWLR 315 at 318-319. I have also been mindful of the careful scrutiny required of trial judges when considering uncorroborated evidence about what was said by the deceased in claims against estates: see, for example, Plunkett v Bull (1915) 19 CLR 544 at 548-549 per Isaacs J.
Taking all of those observations and admonitions into account, and not overlooking that there is no contemporaneous written corroboration of the representations, I nevertheless adhere to my impression that Jessie was a reliable witness in relation to her evidence of what was said to her by Tracey and Allan. I am actually satisfied on the balance of probabilities that the words which she says were spoken to her as constituting the alleged representations were in fact said and find accordingly. It is to the legal consequences (if any) of the finding that those words were said that the Court turns next.
Mr Mitchell put to the Court that the relief sought by Jessie based on proprietary estoppel “all hangs on paragraph 50” of the SFASOC and that the other representations were “contextual” (Tcpt, 20 August 2025, p 104(15)). With respect to Mr Mitchell, the legal significance of the descriptor "contextual” was never made clear.
Paragraph 50 to 52 in its final form in the SFASOC was:
50. Each of Representations 1, 5, 8, 11, 12, 13 and 14 (the Representations) Cumulatively [sic] as to some or all, was (or were) a clear and unequivocal promise made by the Deceased to the Plaintiff who relied upon the promise that the Deceased would give the plaintiff a half share in the property, formerly recognised as an interest held by Tracey, plus a further undefined share in the property, that together with the half share referable to Tracey's interest, amounted to her being given most of the property and be able to live in the property for her lifetime. (emphasis added – the promise)
51. To the extent that each of Representations 1, 5 and 8 were made by Tracey and not made by the Deceased (it is not accepted that Representations 2, 6, and 9 are made out):
a. the Deceased acquiesced in the making of Representations 1, 5 and 8 by Tracey, such acquiescence occurred in circumstances where the Deceased knew that the Plaintiff relied on the Representation and would act in reliance upon the assumption or expectation that the Deceased would give the plaintiff a half share in the property, formerly recognised as an interest held by Tracey, plus a further undefined share in the property. that together with the half share referable to Tracey's interest, amounted to her being given most of the property and be able to live in the property for her lifetime.
b. The Deceased was aware that Tracey did not hold a half share in the property and was aware that he had executed a mutual will with Tracey and was aware that he had not gifted a half share in the property in his will and nor had Tracey and nor could they without their written agreement to do so and knew in the case of Representations 5 and 8 that in circumstances of Tracey's terminal illness, that written agreement before his lawyer Robbert Fox was a diminishing and distant prospect.
c. The Defendant failed to correct Representations 1, 5 and 8 to properly reflect the matters in b that were known to the Deceased, in the knowledge that the Plaintiff would continue to work in the newsagency business on an unpaid basis and support him and pay the expenses of the property and otherwise continue to suffer the detriments referred to below in paragraph [53A].
52. A reasonable person in the Deceased's position must have expected or intended, and the Deceased actually did expect or intend, that the Plaintiff would rely upon the Representations by continuing to work on an unpaid basis in the Newsagency business and pay the expenses relating to the property and care of the Deceased.
The SFASOC was pleaded by reference to the elements of proprietary estoppel set out in Kramer (see [65] above) and Mr Mitchell submitted that those elements were satisfied. For the reasons which follow, the Court accepts the defendants’ submissions that they were not.
Before considering the various individual representations referred to in paragraph 50, three general difficulties can be identified.
First, what I have defined as the promise cannot be described as clear and unequivocal by reason of at least the following:
“Cumulatively as to some or all” is an immediate indicator of lack of clarity. An operative representation cannot be extracted from an interchangeable set of allegations in a manner akin, for example, to cascading restraint of trade provisions: an allegation that if not representations A, B and C, then A, D and E, then C, E and F etc. constitute the relevant representation.
“Formerly recognised as an interest held by Tracey” is also unclear. Recognised by whom? How was it recognised, especially in circumstances where in fact Tracey never had a legal interest in the property.
“Plus a further undefined share” (my emphasis) is in its very terms unclear and equivocal.
“Amounting to her being given most of the property” (my emphasis) is similarly unclear and equivocal. What between 51% and 99% of the property would be sufficient? The fact that Jessie confines her claim to half the property is a clear recognition of this difficulty.
This first difficulty is sufficient to demonstrate why Jessie’s proprietary estoppel case fails.
Second, insofar as the various words were relied upon were spoken by Tracey, Jessie has failed to establish how they could be a representation made by Allan as alleged. A representation could only be made by Allan if he spoke the words said to constitute the representation himself or if they were spoken on his behalf by someone as his agent.
To establish that Tracey was Allan’s agent would require proving that Tracey had actual or ostensible (also called apparent) authority. There is no suggestion of actual authority. Ostensible authority would require Allan to have held out Tracey as authorised to make the representations on his behalf. This was apparently sought to be done by allegations such as:
31C By their marriage, their entry into mutual wills, their intertwining of business and familial affairs referred to in paragraph [21], the illness of the Deceased described in paragraph [28], his presence at the occasion referred to in paragraph [31] and his omission to correct Representation 5, Tracey made Representation 5 on behalf of, and or with the agreement of the Deceased (Representation 7).
If this is intended to be an allegation of holding out by conduct, then the Court accepts the defendants’ submission that none of the matters alleged, taken individually or together, can support a finding that by reason of ostensible authority Tracey made the alleged representation on behalf, or with the agreement, of Allan.
Returning to the critical paragraph 50 of the SFASOC, the problem of authority is sought to be addressed in paragraph 51 of the SFASOC, set out in [131] above.
The Court accepts the defendants’ submission that none of the matters in paragraph 51 of the SFASOC is sufficient to make Tracey’s words Allan’s for the purpose of a proprietary estoppel case based on encouragement by representation. However, appeals to Allan’s acquiescence (if the Court were to find on the balance of probabilities he had acquiesced by his silence, which it does not, given the presence of other plausible explanations such as not wanting to get into an argument with Tracey) and failure to correct may have been arguably relevant if it had been pleaded or argued – which it was not – that Allan had made the alleged representations by his silence. This would have required Jessie to plead and prove that in the circumstances attending Tracey uttering the alleged representations, Allan had a duty to speak. This case was never advanced and no submission was ever advanced that Allan had such a duty. The case, as paragraph 50 makes clear, was always of “a clear and unequivocal promise made by [Allan] to [Jessie]”.
The third difficulty arises from the requirement that Jessie relied on the promise in the sense that she would not have acted as she did in the absence of the promise. Addressing this issue draws attention to what, with respect, can only be described as the artificiality of the allegation made by paragraph 50 of the SFASOC. There is no evidence that Jessie understood the promise in the way that it is alleged in paragraph 50 or relied upon such a promise.
How she is alleged to have acted is pleaded as:
50. The Plaintiff relied upon each of the Representations (and the cumulative effect of some or all of them) by continuing to work on an unpaid basis in the Newsagency business and pay the expenses relating to the property and care of the Deceased. The Plaintiff would not have so acted in the absence of one or more Representations and or the Representations made a difference to the Plaintiff so acting.
The evidence does not establish any such reliance as alleged. Nor does it demonstrate that Jessie would not have acted as she in fact did in the absence of the representations.
These conclusions can be made good by considering Jessie’s principal affidavit sworn on 2 April 2024. However, in doing so, I again make clear that Jessie’s care and sacrifices for her parents reflect only to her credit.
I am not satisfied that Jessie’s first life-changing decision was related to any representation. The newsagency was purchased by Tracey through P A Sellar in May 2007. After Allan was diagnosed with prostate cancer in 2008, Jessie’s evidence is:
- My father was required to attend daily treatment for his cancer. To maintain the management of the newsagency, I took a more active role in the management of the newsagency. To do this, I gave up my teaching career, where I had secured a job as a casual teacher at Heathcote High School.
- This was a difficult decision for me because I really loved to teach and it is what I had studied to do. …
It is only after this that she deposes to Representation 1. This suggests that her decision to give up her teaching career was as described in paragraph 54 of her affidavit and not because of any representation by or on behalf of Allan. In cross-examination Jessie maintained it had been because of what she believed she had been promised. Given that state of the evidence, I am unable to reach a state of actual satisfaction on the balance of probabilities that Representation 1 was made before the decision she deposes to in paragraph 54 of her affidavit. However, even if it was, it suffers from the difficulties referred to in [147] to [151] below.
What is clear is that the need for her father to undergo daily treatment set her life on a particular course of working in the newsagency and caring for her parents as the need arose. Jessie had not received wages for her work in the newsagency and there is no evidence that she at this time, or at any other time, asked for or was offered wages. Her evidence was that she “never really thought to ask” for wages (Tcpt, 20 August 2025, p 132(47)). She was, as appears below, later offered and given the newsagency in return for her devoting herself to her parents.
Jessie deposes that Representation 1 was made to her by Tracey in 2009 in the presence of Allan. However, she gives no evidence that she did anything she was not doing, or would not otherwise have done, in reliance on that representation. She goes on that by 2010 she was operating four gymnastic locations, a cheerleading academy and managing the newsagency. Furthermore, Representation 1 is about Tracey’s wishes: that she and Jessie work together in the newsagency and that (on the assumption Allan predeceases Tracey), Tracey could live in the granny flat.
Further as to Representation 1, while it maybe be accepted that the words conveyed the representation “that the property was hers in a general sense and that she would be conveyed ownership of most of the property when [Allan] died”, the representation is not clear and unequivocal. The assertion that “you will always have this house” is inconsistent with owning “most” of the property. What “most of the property” means is indeterminate, as is how the property is to be “conveyed”. For example, because the representation seems to assume that Allan would predecease Tracey, it could refer to Tracey giving some part of the property to Jessie after it had passed to Tracey under Allan’s will.
The lack of clarity was demonstrated by Tracey’s evidence in this exchange with me about Representation 1 during her cross-examination:
HIS HONOUR
Q. Did your mother ever, or did either of your parents ever say to you, in order to get this house when we’re gone, you’re going to have to work in the newsagency?
A. When dad was diagnosed with prostate cancer and he had to go to St George Hospital for treatment, the conversation was had of, we need support to run the business. Your dad’s needing to go through treatment. In order to go through treatment, he had to come off his Parkinson’s medication because the medication mimics the symptoms of cancer in blood tests. The conversation was, we don’t know if dad will come back from that or what that will do for his Parkinson’s. So you need to step in. You’re the one that has been working here periodically. You need to come and take a more active role.
Q. I understand that, but did your mother ever suggest to you that in order to, as it were, earn the house, you had to work in the newsagency?
A. I don’t think she ever said the words in order. I think it was more of a, you’re going to be looked after in the long run because you’ll have a share in the house. You’re going to--
Q. Did you understand that to be the case, whether or not you worked in the newsagency?
A. No. I--
Q. That is to say, you didn’t understand it to be the case?
A. The conversation, the way that it was given to me was, as a result of you working in the newsagency, you will get a share in the house. (Tcpt, 20 August 2025, p 133(23)).
When I later asked her what she understood by being “looked after” she replied “I think with the other conversations that I’d always had, that mum’s interest in the house would go to me” (Tcpt, 20 August 2025, p 134(30)). However, there was no evidence of what the “other conversations” were that preceded Representation 1.
By 2014, when she fell pregnant with Noah, she had sold two of her four gymnastic locations. It was around this time Representation 4 was made. This is not relied upon in paragraph 50 because Allan was not present when it was made. However, it forms part of the context. It is Tracey identifying her plan that Jessie had to keep working in the newsagency to generate the income to meet household and medical expenses. It is at least implicit in this and the other representations that Jessie would continue to live in the property rent free.
Noah was born in June 2015 and Jessie’s relationship with his father ended shortly after. In August 2015, Tracey was diagnosed with stage 4 lung cancer. Jessie deposes (paragraph 66) that “following my mother’s diagnosis, I could not continue to work long hours in the newsagency as well as keep up the work on my remaining gymnastic businesses”.
It is around this time that Representation 5 is made to her in the presence of Allan. It is relied on in paragraph 50 of the SFASOC. It is a representation that was made good by Jessie becoming sole shareholder of P A Sellar, which owned both the newsagency and the commercial building in which it was located.
Importantly, the affidavit is silent about any reliance on Representation 5 relevant to the promise, or at all. Again, Jessie gives no evidence that she did anything she was not doing, or would not otherwise have done, in reliance on that representation. Given the circumstances, it is difficult to see what Jessie could have done other than take over the newsagency to support her parents and keep them in the home in which she has lived all her life (and in which, Jessie has given evidence, she wishes to continue to live). There was no evidence or submission that any other course was open to her that she would have pursued. Her operation of the newsagency went towards, among other things, the expenses of the property in which she and Noah were living, as the defendants submit, rent free.
Further as to Representation 5, that representation as pleaded is not made out by the words alleged. Neither the words nor the representation as pleaded say anything about Jessie receiving any share in the property. Furthermore, while it is alleged that this representation was made in the presence of Allan, Jessie gives no evidence that Allan was present. Her evidence in her principal affidavit (paragraph 66) is of an intimate conversation between her and Tracey in the lounge room of the family home while Tracey nursed Noah after Tracey had undergone a day of cancer treatment. The Court is not satisfied that Allan was present.
Jessie also deposes that around that time Representation 8 was made. However, again she gives no evidence that she did anything she was not doing, or would not otherwise have done, in reliance on that representation. In what I regard as a truthful answer and which I accept, when I asked Jessie in relation to Representation 8, “Did you think you had to do anything on your part from this conversation to get half the house?” her answer was “I think I thought I was already doing it” (Tcpt, 20 August 2025, p 126(6)). The Court finds that at this point what she “was already doing” was not in reliance on any pleaded promise or representation concerning obtaining half (or more) of the property.
Further as to Representation 8, the representation as pleaded is not made out by the words alleged. Even if it were, the representation was not made to Jessie. Jessie accepted:
Tracey and Allan were not speaking to her (Jessie) (Tcpt, 20 August 2025, p 122(50) – 123(1));
She was only assuming that Tracey and Allan knew that she (Jessie) could hear them (Tcpt, 20 August 2025, p 124(7));
That what she took away from what she heard was “that possibly both of them would change their wills (Tcpt, 20 August 2025, p 125(25));
Nor would the Court find that Allan’s response of “OK Wal” could reasonably be understood as clear agreement with what Tracey said. It is equally plausible that it was a non-committal response or one designed to placate Tracey and avoid an argument. These alternative characterisations are open in the light of Mr Nunn’s unchallenged evidence that Allan had said that he (Allan) was not at all keen on Tracey’s desire to give “half the house” to Jessie, and that after her death he said he wanted to share the estate equally between the three children (see [92] and [96] above).
Jessie’s evidence is that Representation 11 was made to her in 2016 by Allan. It is relied upon in paragraph 50 of the SFASOC. However, again she gives no evidence that she did anything she was not doing, or would not otherwise have done, in reliance on that representation. While the representation is also unclear as to whether the future gift was to be inter vivos or testamentary, there is no suggestion Jessie understood it to be the former. To the extent it might be found that Jessie relevantly relied on that representation as referring to a testamentary gift, the Court finds that any such reliance was unreasonable because by December 2015 (see [105] above) Jessie knew the contents of Allan’s will and that Allan could not legally change it. Under cross-examination, Jessie denied she had that understanding at the time Representation 11 was made to her, but I do not accept her denial in the face of Mr Fox’s contemporaneous notes from December 2015.
Further as to Representation 11, in its reference to “your mother’s half of the house” (which Tracey never had) is inconsistent Representation 1’s reference to ownership of “most of the property”. The fact that Jessie did not raise the inconsistency suggests she was not relying on either of them. Alternatively, the inconsistency made reliance on either of them unreasonable.
Jessie then says that Representation 12 was made around mid-2018. However, again she gives no evidence that she did anything she was not doing, or would not otherwise have done, in reliance on that representation. This is not surprising, given that she describes her circumstances at the time (paragraph 84) as “Joseph [her partner] did not really want to move into the family home [in the events which happened, he did not] and I did not want to leave the family home and I did not feel that I could leave dad”.
In any event, the representation as pleaded is not made out by the words alleged. Even if it were, its reference to “most of this house” does not satisfy the requirement of a clear and unequivocal representation.
Furthermore, to the extent it might be found Jessie relevantly relied on Representation 12, the Court finds any such reliance would have been unreasonable, again because by December 2015 (see [105] above) Jessie knew the contents of Allan’s will and that Allan could not legally change it. There is no evidence that he had told her (or that she had even asked) that he had actually changed his will since December 2015.
Although Representation 13 is referred to in paragraph 50, it is irrelevant because Jessie accepted in cross-examination that she did not rely on it (Tcpt, 20 August 2025, p 141(14)). However, I note that before that concession was made, Jessie again had given no evidence that she did anything she was not doing, or would not otherwise have done, in reliance on that representation. Furthermore, assuming some detrimental reliance could be shown based solely on this representation, given it was made within a year or less before Allan died, proportionate relief would not be to declare that Jessie has an interest in half the property.
The defendants relied on several matters as supporting the proposition that the representations were never said to Jessie. The Court relies on these in support of its conclusion that to the extent that any of the representations as pleaded were spoken to Jessie, she did not rely on them so as to give her any entitlement to relief:
She failed to raise any of them with Mr Fox (see [105] above).
The focus of Mr Fox’s advice was predicated on her receiving the property under Allan’s will and being in the best position to buy out her stepsiblings (see [102] above).
She failed to raise any of them with Ms Lowe (see [71(3)] above).
At no time, up to including after the making of Representation 11 and before the making of Representation 12, did she ever follow up with Allan whether he had changed his will.
The representations were not referred to in the caveat (see [123] above), which propounded an interest different to that sought to be established in these proceedings.
The first time that Jessie referred to the representations and her alleged reliance on them was in solicitor’s correspondence in 2023.
“44A. In the circumstances, Trust 1 and Trust 2 were express oral trusts…
44E In the circumstances, s 23C of the Conveyancing Act 1919 should not be permitted to be used as an instrument of fraud to defeat Trust 1 and Trust 2.”
“38. On or around 2016 the Deceased said to the Plaintiff:
I will keep your mother’s dying wish. I will give you your mother’s half of the house.
38A This constituted an oral declaration of trust over a half interest in the property, constituting the Deceased, as legal owner of the property, as trustee of the property, the trust property being the property as to a fifty percent interest, the plaintiff as beneficiary and a personal obligation as to the trust property, namely that the trust property was beneficially held by the plaintiff (Trust 1).
…
43. Subsequently the Deceased said to the Plaintiff, sometime after visiting his solicitors at MCW Lawyers:
I have followed your mother’s wishes. I gave you half of the estate and the remaining half is to be shared between you, Darren and Paula.
43A. This constituted a trust in the same terms as Trust 1 (Trust 2).”
It was submitted that the four essential elements of a trust were made out:
Allan was the trustee and was the legal owner of the property;
The trust property is “your mother’s half of the house” and “half of the estate”;
Jessie is the beneficiary as to “your mother’s half of the house” and “half of the estate”; and
A personal obligation was annexed to the property, namely that Allan will “give” or “gave” “your mother’s half of the house” and “half of the estate” to Jessie.
It was submitted that if Jessie’s oral testimony was accepted by the Court regarding the representations made by Allan that form Trust 1 and Trust 2, and the provenance of the claimed statements made by Allan is accepted, then a trust over a half share in the property was created by Allan. The issue was submitted to be whether the language or conduct of Allan showed a sufficiently clear intention to create a trust.
Jessie’s submission was that she voiced her intention to move out of the family home, and in order to induce her to remain and care for him, Allan reaffirmed the arrangements previously discussed, namely that Tracey’s half interest in the properties would be recognised and given to Jessie. As such, it was submitted that at the time of making the representation, Allan intended to create a trust.
While the trust was over land and oral, it was submitted s 23C of the Conveyancing Act 1919 (NSW) could not be made an instrument of fraud by denying the oral trust which gave Jessie an interest in the land (Allen v Snyder [1977] 2 NSWLR 685 at 692-3; 699. Such a trust could be enforced, despite the lack of writing as a constructive trust (Shepherd v Doolan [2005] NSWSC 42 at [35] per White J (as his Honour then was)).
This aspect of Jessie’s claim is rejected for the following reasons.
It is axiomatic that for the Court to find an express trust, there must be certainty of intention, subject matter and object. In relation to both alleged trusts, neither the words themselves nor when considered in the context of the surrounding circumstances support the conclusion that Allan intended to create what the law would recognise as a trust.
Trust 1 is a statement about a future gift (whether inter vivos or testamentary, but in the context of the reference to Tracey’s “dying wish” the Court finds to be the latter). There is no suggestion of an intention on Allan’s part immediately to hold the subject property for the benefit of Jessie. This is particularly the case insofar as the promise relates to a proposed provision in a will, given that a will can always be changed. Furthermore there is no certainty of subject matter. Tracey did not have “half of the house” and, in any event, to what “half of the house” might actually refer is uncertain.
Trust 2 is a statement (which, on the evidence, was false) about what Allan said he had done in his will. As with Trust 1, and even if it were true, there is no suggestion of an intention on Allan’s part immediately to hold “half the estate” for the benefit of Jessie. This is, again, particularly the case insofar as the statement relates to a gift in a will, given that a will can always be changed.
- The Plaintiff and the Deceased shared a common intention or joint endeavour that they live as a family in the property for the duration of each of their lifetimes and that the plaintiff would eventually own half of the property upon the passing of both of her parents.
- The Plaintiff paid the amounts referred to above, worked in the newsagency for no pay and suffered the detriments referred to above in paragraph [53A] as contributions to that common intention or joint endeavour.
The alleged detriments were:
$314,02.58 paid by Jessie towards the mortgage and outgoings of the property since August 2015 at the invitation or encouragement of Allan (I interpolate that the Court has found no such invitation or encouragement attributable to Allan);
$37,557 on the administration costs of the estate (I interpolate that such expenditure could not be recoverable as part of this claim because they were necessarily incurred after Jessie would have known that Allan had not changed his will to leave her half the property);
Relinquishing her teaching career in 2009;
Working for no pay in the newsagency from 2009 onwards;
Progressively winding up her gymnasium businesses.
Constructive Trust Claim
30 The ultimate basis for the imposition of a constructive trust is that it would be unconscionable for the holder of the legal title to the property to assert that he holds it free of any beneficial interest in the claimant. However, although “unconscionability” is the underlying basis upon which equity will intervene, it is not itself a sufficient description of the principles upon which equity does so. Equitable rights do not arise merely because the Court considers it fair in all the proven circumstances that the legal owner of property should hold it, or a portion of it, for the benefit of another. (Muschinski v Dodds (1985) 160 CLR 583 at 615-616).
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).
32 Another class of case where equity will intervene is to “…[restore] to a party contributions which he or she has made to a joint endeavour which fails when the contributions have been made in circumstances in which it was not intended that the other party should enjoy them.” (Baumgartner v Baumgartner (1987) 164 CLR 137 at 148). The characteristics of a constructive trust which arises on this basis were explained by Campbell J in West v Mead [2003] NSWSC 161 at [52]-[64]. His Honour said (at [59]):
“ … a plaintiff needs to establish there is indeed a joint endeavour between the parties, in which expenditure is shared for the common benefit. It is also necessary to identify what the scope of that joint endeavour is. … Further, for any couple, the scope of the joint endeavour they are engaged in might change from time to time. If, within the scope of a joint endeavour … an asset is acquired, as a result of contributions both parties have made, and for a purpose of the ongoing joint endeavour of the parties, this gives rise to the presumption that the beneficial interest ought be shared equally. That presumption can be displaced if one party is able to show that the contributions, both financial and non-financial, to that asset should be regarded as unequal. ”
33 The imposition of such a trust does not depend on the actual or presumed intention on the part of the prospective trustee to hold property on trust. Baumgartner v Baumgartner was significant for its expansion of the nature of the contributions which may be taken into account in determining the parties’ proprietary interests to include non-financial contributions. (Green v Green at 369; West v Mead at [56]). The plaintiff says that the acquisition of the Nora Head property was a joint endeavour between her and the deceased to which each made financial and non-financial contributions. However, more is required to impose a constructive trust on these principles. The joint endeavour must fail, or there must be a premature termination of the parties’ joint relationship. (Baumgartner v Baumgartner at 148-149; West v Mead at [64]). In the present case there was no premature termination of the parties’ joint relationship or failure of their joint endeavour. I do not consider that the principles established in Baumgartner v Baumgartner and applied in Hibberson v George (1989) 12 Fam LR 725 apply directly in this case. I turn to the claim based on a “common intention” constructive trust.
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).
35 It is unnecessary to enter the debate as to whether a trust based on the parties’ common intention is properly characterised as a constructive trust, or whether it should be characterised as an express trust which is enforceable notwithstanding the want of writing as it would be an equitable fraud for the legal owner to rely on the absence of writing to deny the beneficiary’s interest. (Allen v Snyder at 692-3; 699). In later cases, eg Grant v Edwards [1989] Ch 638*; Maharaj v Chand* [1986] AC 898 at 907*; Green v Green* (1989) 17 NSWLR 343; Brandling v Weir [2003] NSWSC 723; Parianos v Melluish (2003) 30 Fam LR 524, this class of trust has been classified as a constructive trust, even though it is based on the parties’ actual intentions, rather than imposed despite their intentions.
36 The intention to be established need not be that the parties have a specific share of the property. It is sufficient that they intend that the claimant should have a beneficial interest or “some form of proprietary interest”. (Green v Green at 355, 356; Grant v Edwards at 654; Parianos v Melluish at [31], [39]).
37 The intention may be established in various ways. There may be an agreement between the parties as to how the property should be held. There may be express statements as to their intention. Their intention may be inferred from their conduct. The question of what acts demonstrate an agreement or common intention referable to the beneficial enjoyment of the property is one of evidence, not law. (Allen v Snyder at 691; Green v Green at 355). A common intention that a party have a beneficial interest in a property owned by another will not be inferred merely from their joint occupation of property, nor the carrying out of household duties, nor the bringing up of children on the property, nor the doing of repairs, renovations, maintenance, decoration or improvement, nor the provision of furniture. (Pettitt v Pettitt [1970] AC 777 at 805-6, 811, 818, 826; Gissing v Gissing [1971] AC 886 at 900, 910; Burns v Burns [1984] Ch 317 at 326, 328, 342).
38 The intention may be inferred from financial contributions, direct or indirect, to the acquisition of property, including the paying off of mortgages, or the payment of expenses which free up funds for that purpose. (Burns v Burns at 328–329; Gissing v Gissing at 900, 902-3, 906-907; Grant v Edwards at 647, 648-9, 653-4, 655; Green v Green at 355). This is a wider enquiry than whether a contribution was made to the purchase money such as to give rise to a presumption of a resulting trust. Whilst both enquiries address the inferences to be drawn as to the parties’ actual intentions, a contribution to the purchase price creates a presumption of beneficial ownership in the proportion which the amount contributed bears to the price. For a “common intention” constructive trust, a contribution, direct or indirect, to the costs of acquisition of the property is a matter from which an intention that the claimant have a beneficial interest in the property might be inferred. There is a difference between a fact from which an inference can be drawn, and a fact from which a rebuttable presumption arises. The significance of the difference will depend upon the strength of the presumption. In the case of the “common intention” constructive trust, there is no presumption that the beneficial interest is in proportion with the contribution to the purchase price.
39 Other evidence from which conclusions may be drawn about the intentions of the parties include declarations of the parties before or at the time of the transaction or so close in time after the transaction as to constitute a part of it. Subsequent declarations of intention are only admissible against interest. (Calverley v Green (1984) 155 CLR 242 at 262 and 269; Charles Marshall Pty Ltd v Grimsley (1956) 95 CLR 353 at 365; Bryson v Bryant (1992) 29 NSWLR 188 at 215).
40 The plaintiff must also show that she acted to her detriment in a way referable to the agreement or intention that she have an interest in the property. (Austin v Keele (1987) 10 NSWLR 283 at 291; Grant v Edwards at 648; Carruthers v Manning [2001] NSWSC 1130 at [124]). Conduct which is insufficient to establish a common intention as to the ownership of the property may be sufficient to constitute relevant actions to the plaintiff’s detriment to establish a trust if the common intention is established otherwise. Conduct may be both the evidence from which an intention that the plaintiff have a beneficial interest can be inferred and the act of detrimental reliance. (Green v Green at 355; Grant v Edwards at 647, 652, 655). In Grant v Edwards Nourse LJ said (at 648) that to qualify as acting on the common intention, the conduct must be such that the plaintiff could not reasonably have been expected to embark upon it unless she were to have an interest in the property. In Green v Green (at 357) Gleeson CJ, with whom Priestley JA agreed, approved a less stringent test taken from the judgment of Sir Nicholas Browne-Wilkinson VC in Grant v Edwards (at 657) that:
“... once it has been shown that there was a common intention that the claimant should have an interest in the house, any act done by her to her detriment relating to the joint lives of the parties is, in my judgment, sufficient detriment to qualify. The acts do not have to be inherently referable to the house. … The holding out to the claimant that she had a beneficial interest in the house is an act of such a nature as to be part of the inducement to her to do the acts relied on. Accordingly in the absence of evidence to the contrary, the right inference is that the claimant acted in reliance on such holding out and the burden lies on the legal owner to show that she did not do so...”
The defendants submitted that if Jessie’s representation case failed then the claims for relief based on a common intention or joint endeavour must also fail. The Court accepts that submission. The common intention or joint endeavour pleaded in paragraph 56 of the SFASOC (see [178] above) has not been made out.
It is convenient to begin with White J’s salutary observation that “equitable rights do not arise merely because the Court considers it fair in all the proven circumstances that the legal owner of property should hold it, or a portion of it, for the benefit of another”. It might be thought that where what Jessie was plainly promised in return for working in the newsagency and assisting her parents – the newsagency (which brought with it the commercial property) – did not yield a substantial financial benefit to Jessie on sale, it would be fair for Jessie to receive more of the property. However, that is not how the principles apply.
Given the Court’s findings about the representations and who made them, Jessie, who bore the onus, has failed to prove that Allan agreed with her, or that it was her and Allan’s common actual intention, that she should have a half interest in the property. Again, as White J points out, “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”. Nor do I accept that their actual common intention can be inferred from Jessie making the mortgage and other payments referred to in [179] above, not least because by only a few weeks later Jessie was aware of the contents of Allan’s will (see [105] above).
Similarly, the joint endeavour pleaded in paragraph 56 of the SFASOC has not been made out. Furthermore, paragraph 59 of the SFASOC pleads that “there was a departure from the common intention or joint endeavour caused by Tracey’s illness and death” as an event not contemplated by the Allan and Jessie. It is not apparent how that sad event could represent either the failure of the pleaded joint endeavour or its premature termination.
However, in my view wider equitable principles operate in the present case. The plaintiff spent money on the defendants' property in the expectation, induced or encouraged by the defendants that he would be able to live there indefinitely as a member of their family. This expectation has been defeated by the occurrence of events which were not in contemplation when the money was spent and as a result of which any subsisting right of residence by the plaintiff in the property is now of no practical consequence. In my opinion, on the facts of this case, it would be unconscionable and inequitable that the defendants should now retain the benefit of the expenditure by the plaintiff of his money on their property free of any obligation of recoupment to him. Consequently an equity arises in favour of the plaintiff and the court must determine how in all the circumstances justice requires that that equity be satisfied. What a plaintiff in such a case as this should in justice receive will not necessarily correspond with what, when the relevant expenditure was made he expected to receive.
In paragraph 62 of the SFASOC Jessie claims that she “is entitled to a return of the contributions made to the property and the deceased’s estate and quantum meruit in respect of the provision of those services by her in the Newsagency business for which she was unpaid and which were provided for the benefit of the Deceased and the Deceased’s estate, including the property”. She claims $666,483.30 (inclusive of interest at Supreme Court rates) as reasonable remuneration for her work in the newsagency between July 2009 and December 2019, calculated by reference to the hours she claims to have worked and applying the General Retail Industry Award 2010 and based on the levels appropriate for being second in charge and then in charge of a retail outlet. Those hours begin at 30 per week and then increase to 40, 50 and then 61.5 from July 2015.
Citing the decision of the High Court in Pavey & Matthews Pty Ltd v Paul (1986-1987) 162 CLR 221, it was submitted for Jessie that the elements for a claim in quantum meruit in a case where there was contract for services had been made out. These were said to be:
Jessie performed work conferring a benefit without being rewarded as agreed;
The benefits conferred were not intended as a gift or done gratuitously; and
The benefit was actually or constructively accepted by Tracey and/or Allan at the expense of Jessie.
The Court accepts the defendants’ submission that no such entitlement was established. There are five reasons for this conclusion.
First, the Court is not actually satisfied on the balance of probabilities that Jessie actually worked the hours she now claims, going back many years. For example, it was Tracey who was managing the newsagency until August 2015 and in those years Jessie was running her gymnastics businesses and judging gymnastic competitions. At all times before and after Tracey’s illness there were other employees in the newsagency (for example, Ms Lowe). In the later years Jessie also had child care responsibilities.
Second, insofar as Jessie submits that she was not rewarded “as agreed” there was never any agreement (or request by Jessie) that she be paid a wage. Insofar as Jessie seeks to include “as agreed” an entitlement to half the property, the Court’s findings in relation to the representation claim make clear that Allan never agreed, that there was no such unequivocal term and that Jessie has not established that she relevantly relied on anything attributable in law or fact to Allan. In other words, there is no “injustice” suffered by Jessie which can be visited on Allan.
Third, Allan (or the estate) is not the correct defendant for the benefit sought to be compensated by a claim for wages. Her labour was a benefit conferred on P A Sellar and if Jessie had a basis to compensated in the way she seeks, that would be a claim against P A Sellar.
Fourth, the overall arrangements driven by Tracey and then by Allan involved Jessie living rent free in the property and enjoying the benefits that enured to the family from the funds provided by the newsagency. The arrangement was in this respect unremarkable: a family living off a business run by the family and where the family members who worked in the business did not receive a formal wage. Jessie lived in the property and enjoyed those benefits. To compensate her with the equivalent of full time wages would be to overcompensate her, because she would be in a position of having enjoyed the benefits and (by the Court’s award) receiving a wage that was never part of what was contemplated.
Fifth, in his leading judgment in Pavey, Deane J said (at 263):
“What the concept of monetary restitution involves is the payment of an amount which constitutes, in all the relevant circumstances, fair and just compensation for the benefit or “enrichment” actually or constructively accepted. Ordinarily, that will correspond to the fair value of the benefit provided (e.g. remuneration calculated at a reasonable rate for work actually done or the fair market value of materials supplied). In some categories of case, however, it would be to affront rather than satisfy the requirements of good conscience and justice which inspire the concept or principle of restitution or unjust enrichment to determine what constitutes fair and just compensation for a benefit accepted by reference to only what would represent a fair remuneration for the work involved or a fair market value of materials supplied.”
There was no dispute that Jessie had personally made payments towards the mortgage over the property and for some outgoings of $128,700. The defendants accepted that Jessie could claim two-thirds of this from the estate. The Court also accepts their submission that there was no basis for that sum to be secured by a charge against the estate. However, if the debt is not paid before the property is transmitted to the three beneficiaries, equity would secure Jessie’s right of contribution from the defendants for the mortgage repayments by a charge over their interest in the property.
Jessie claimed an extra $184,300 paid by P A Sellar if the Court accepted that Tracey’s share in that company had been transferred to Jessie on or about 9 September 2015. This seemed to be put on the basis that P A Sellar had been able to do so because of Jessie’s operation and management of the newsagency. The defendants submitted that the share was not transferred until 9 October 2018 and that from Tracey’s death until that date, Allan was the shareholder and that it was therefore “his” money that had been applied to the mortgage and outgoings.
In my respectful opinion, all parties’ reliance on who the shareholder was is misconceived. Given the dearth of independent evidence and the fact that non-lawyers could well assume that by making someone a director you were “giving” them the company, as a matter of law the Court will prefer the ASIC record and finds that Tracey’s share was not transferred to Jessie until 2018. However that is irrelevant to the present issue. Jessie and P A Sellar are separate legal persons. Jessie cannot claim money paid in respect of the property by P A Sellar. Whether P A Sellar has a claim is not an issue before the Court, but any such claim would have to overcome what seems to be very clear on the evidence, being that Tracey intended, and Jessie understood, that Tracey and Allan would pay their debts and living expenses, including in respect of the property, out of P A Sellar’s income.
Jessie is entitled to judgment against the first defendant representing the estate for $128,700.
There is some doubt about the quantum of this claim. Jessie pleads an amount of $37,557. The defendants submit that on the evidence the amount is $16,885. The parties agree that, whatever the amount, it should be reimbursed to Jessie from the estate to the extent it represents proper administration costs. The Court rejects Jessie’s alternative submission that she has a direct cause of action for one-third of her expenditure against each of the defendants.
However, these proceedings have not been framed as an action in debt simpliciter against the estate. In those circumstances it is not appropriate (absent the consent of Ms Ryan with an agreement as to quantum) for any judgment to be entered against the estate in respect of this amount in favour of Jessie. Nor would the estate be able to rely on the outcome of these proceedings (whether by estoppel or otherwise) as precluding Jessie from claiming reimbursement for amounts that are properly described as administration expenses. The Court has not been invited to make a finding on whether or not the amount claimed (or any part of it) meets that description and does not do so.
The orders of the Court are:
Declare that in the events which have happened and upon the proper construction of Clause 3(a) of the will of the late Allan Sellar made on 26 September 1990, “my principal place of residence as at the date of my death” is that land contained in Lot 3 DP XXXXX and Lot 643 DP XXXXX together with all improvements thereon and known as 120 and 120A XXXXX, Gymea Bay.
Judgment for the plaintiff against the first defendant in the latter’s capacity as executor of the estate of the late Allan Sellar for $128,700.
The proceedings are otherwise dismissed.
The plaintiff is to pay the defendants’ costs of the proceedings.
The first defendant is entitled to her costs of the proceedings on the indemnity basis out of the estate of the late Allan Sellar.
Liberty to any party to apply for directions to make an application to vary these orders or for other orders to give effect to these reasons by email to the Associate to Kunc J on or before 18 September 2026.
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Sellar
Ryan
(1946) 73 CLR 93
(1922) 31 CLR 268
(2024) 281 CLR 484
(1915) 19 CLR 544
(1995) 49 NSWLR 315
(2024) 421 ALR 106
(1985) 160 CLR 583
(1989) 17 NSWLR 343
(1987) 164 CLR 137
(1989) 12 Fam LR 725
(2003) 30 Fam LR 524
(1984) 155 CLR 242
(1956) 95 CLR 353
(1992) 29 NSWLR 188
(1987) 10 NSWLR 283