Fuller v Meehan

[1999] QCA 37

Queensland Court of Appeal

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Interrogate

Catchwords

1. Equity
2. › Constructive Trusts
3. › De facto relationships
4. › Pooling of resources and contributions
5. › Whether unconscionable for legal owner to deny beneficial interest
6. › Effect of deed purporting to settle property entitlements
7. › Whether deed bars equitable claims
1. Equity
2. › Constructive Trusts
3. › Quantification of beneficial interest
4. › Calculation of income entitlement from business
5. › Whether income tax obligations must be deducted before calculating claimant's share
1. Equity
2. › Remedies
3. › Interest
4. › Compound interest on trust monies withheld
5. › Whether compound interest appropriate where constructive trustee unaware of trust
6. › Distinction between funds used commercially and funds applied to domestic expenses

Quick Take

When quantifying a constructive trust entitlement based on a share of business income, income tax obligations must be deducted before calculating the claimant's share, as the relevant concept is the amount available for distribution. Compound interest on constructive trust entitlements is appropriate only where the trustee has used the funds for commercial advantage; where funds were applied to domestic expenses benefiting both parties, simple interest is the appropriate measure. A deed settling property entitlements between de facto partners will not bar equitable claims where enforcement would be unconscionable, but the deed remains relevant conduct and the court should recognise the asset ownership it records.