1999 $44,973 $29,861
2000 $40,486.09 $29,345
2001 $40,429 $23,689
23 Extrapolating for earlier and later periods the total net income which he would have received during the period of the relationship would be in the order of $104,692.
Property dealings during the relationship
24 The defendant sold the unit at Palm Beach in late 2001 for $105,000. The proceeds were applied, after discharging the mortgage, to reduce his debts. On 26 June 2001 he purchased a home unit at 17/8 Debban Walk Cronulla for $290,000. This purchase was funded by borrowings of $302,000 secured on the unit and also the property at Berowra. The defendant did not contribute to the purchase of this unit although she did pay $3,300 in mortgage repayments shortly after the purchase when the unit was not able to be let.
25 There were renovations to Berowra which were the addition of an extra room that was to be a home office and the installation of a verandah. The defendant paid for these extensions as he did in respect of the costs involved in the replacement of the boundary fences.
The plaintiff's property at the conclusion of the relationship.
26 At the conclusion of the relationship the plaintiff had no real property but she had furniture that is now in storage in Tasmania which is insured for $30,000. She still has her car which is insured for $4,400. She presently has $420 in the bank. She recently moved to Tasmania and still has employment with the security firm who employed her in Sydney. She has a superannuation entitlement with that firm which is worth between $30,000 and $40,000.
The defendant's property at the conclusion of the relationship
27 At the conclusion of the relationship the defendant retained his property at Berowra then worth $360,000. He also still retained the two units at Cronulla. Ewos Parade was valued at $360,000 and Debban Walk was valued at $305,000. His properties were subject to mortgages used, inter alia, to fund the purchase of the last unit totalling $353,000. His small quantity of shares was worth $500, his car was worth $2,000 and his furniture was worth $10,000. His superannuation was in an amount of between $290,00 and $300,000. He had a business operated by his company Cool Cats Sports Equipment and Investment Pty Ltd. The company manages his investment properties and share portfolio, designs and screen prints various articles, deals with other matters in the entertainment industry and apparently distributes books in Australia. The defendant operates the company by himself and employs some casual employees from time to time. There is no evidence of the worth of that company and no income tax returns have been prepared for the last two years. Although it may have received some income there is nothing to show that it has made any profits.
28 At the time of the hearing the Berowra property was agreed to have a value of $410,000 and the Ewos Parade unit was agreed to have a value of $405,000. The defendant sold the Debban walk unit in October 2002 for $330,000 and the proceeds were applied to reduce his mortgages. He presently owes $28,489.59.
Contributions by the plaintiff during the relationship
29 The plaintiff alleges contributions in a number of different ways. There were contributions by way of repairs and renovations to the property at Berowra, contributions by way of maintenance and cleaning of the units and contributions as a homemaker. These contributions as a homemaker were by way of contribution to household expenses as well as non-financial contributions. Before I turn to the different contributions I need to deal with matters affecting the credit of the parties.
Credit of the parties
30 In her principal affidavit the plaintiff presented a picture of having previously owned a number of properties in Tasmania and Queensland and, indeed, continuing to own some until the year 2000. She said she was in charge of Quintex's entire contract operations having been head-hunted by Christopher Skase. She painted a picture of later being in litigation against him after the collapse of Quintex and having had extensive expenses in that regard which reduced her situation to that which she found herself in at the commencement of these proceedings.
31 A few days before the hearing of the proceedings commenced, and after the plaintiff had filed her evidence in reply, the defendant served affidavits, as a result of the issue of subpoenas by them, to the firms of solicitors and legal representatives said to be involved in the plaintiff's earlier proceedings. These affidavits disclosed that there had never been the contact alleged by the plaintiff with those legal representatives. When the hearing commenced, those parts of the plaintiff's affidavits, which dealt with these matters, were not read and she admitted, although after being warned, that those parts of the affidavits were false. The plaintiff's explanation was that when she met the defendant she engaged in a deception in which she tried to paint herself as a wealthy woman. She said she felt constrained to continue the deception.
32 There was an affidavit of discovery sworn to by the plaintiff in which she referred to a number of letters from solicitors. These letters were completely false and were concocted by her in order to improve her case and substantiate the story that she had put forward in her affidavit. The letters contained self-serving statements she obviously thought would assist her case in these proceedings. She probably did not realise it at the time but in fact most of the matters that she put forward were probably quite irrelevant to the court's consideration of the claim.
33 Most of the material in the present case is not contentious except in relation to some of the contributions by the plaintiff. Accordingly although the plaintiff has made a clean breast of her dishonesty I will still have to treat her evidence with some reserve and require corroboration on essential aspects.
34 The defendant in his evidence before me presented as a careful witness. He made concessions when necessary and I accept him as a reliable witness.
The legal effect of the plaintiff's conduct.
35 There were submissions that the conduct of the plaintiff in falsifying her evidence was such as to disentitle her from relief. These submissions noted that the equitable defence of clean hands does not apply to a right given by a statute. Reference was made to in Re the Will of Gilbert (1946) 46 S. R. (NSW) 318. These submissions referred to the difficulty that a court has when there has been a misstatement of assets and, in particular, the duty that is said to apply in matters of this nature.
36 The Family Court of Australia has consistently held that there is a clear obligation as a party to proceedings in that court to make a full and frank disclosure of all relevant financial circumstances. See Oriolo ( 1985) FLC 91-653, Briese (1986) FLC 91-713 at 75,181, Stein (1986) FLC 91-779 at 75676-7 and Suiker v Suiker (1993) FLC 92-436 The Court has adopted what was said by Lord Brandon for the House of Lords in Livesey v Jenkins (1985) AC 424 at 437:-
"I stated earlier that, unless a court is provided with correct, complete and up-to-date information on the matters to which, under section 25(1), it is required to have regard, it cannot lawfully or properly exercise its discretion in the manner ordained by that subsection. It follows necessarily from this that each party concerned in claims for financial provision and property adjustment (or other forms of ancillary relief not material in the present case) owes a duty to the court to make full and frank disclosure of all material facts to the other party and the court. This principle of full and frank disclosure in proceedings of this kind has long been recognised and enforced as a matter of practice. The legal basis of that principle, and the justification for it, are to be found in the statutory provisions to which I have referred."
37 These comments are appropriate to these proceedings under the De Facto Relationships Act. A similar approach has been adopted in Family Provision Act cases. See Stewart v. McDougall Unrep, Young J. 19 November, 1987.
38 The submissions then referred to the duty of the court under section 20 of the Act to make such an order adjusting interests of the parties' in the property as it seems "just and equitable" having regard to certain factors. It was said that, by analogy, the court could not make a just and equitable order where the plaintiff had engaged in deception. That submission ignores the remedies that are available for a court where there has been an improper disclosure. These include:
(a) use of the principle in Jones v Dunkel (1959) 101 CLR 298 to draw inferences on any topic concerning which a party has failed to call evidence, namely, that the parties case would not have been assisted by the evidence if it had been called.
(b) to make findings that the value of an item of which a party has not adequately established the value is as high a value as is possible consistently with the description which the court has of the asset; see Armory v Delamirie (1722) 1 Stra 505.
39 The principles as to proper disclosure of assets are of course very important and need to be observed for the court to exercise its discretion. In the present case there has been no misleading of the court because, by not reading relevant paragraphs of her affidavits and admitting to their falsity, the plaintiff corrected her situation. Although submissions were made about the deliberate attempt to improve her case by giving the false evidence, even if there were finding of such deliberate intent, it does not affect the outcome of the court's deliberations. In my view, in the circumstances of this case the court is not entitled to refuse relief because of the deception to which I have referred.
Contributions to the property at Berowra.
40 It is clear from photos in evidence that the property had an overgrown garden and fences were in a poor condition. The plaintiff in her affidavit said that she made the following contributions by cleaning up the Berowra property.