Quince v Varga & Anor

[2008] QCA 376

Queensland Court of Appeal

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For Australian Law.

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Interrogate

Catchwords

1. Equity
2. › Fiduciary Obligations
3. › Creation of fiduciary relationship
4. › Money advanced for specific purpose
5. › Whether Quistclose trust arose
6. › Whether fiduciary relationship existed between investor and intermediary
1. Equity
2. › Trusts and Trustees
3. › Constructive Trusts
4. › Barnes v Addy
5. › First limb — knowing receipt
6. › Whether receipt of traceable proceeds of trust property sufficient
7. › Whether receipt as trustee of family trust constitutes receipt for Barnes v Addy purposes
8. › Knowledge requirements — Baden categories
1. Equity
2. › Trusts and Trustees
3. › Constructive Trusts
4. › Barnes v Addy
5. › Second limb — knowing assistance
6. › Whether appellants knowingly assisted dishonest and fraudulent design
7. › Knowledge requirements — first four Baden categories sufficient
1. Equity
2. › Equitable Charges and Liens
3. › Creation of equitable charge
4. › Whether oral promise to sell property as security creates equitable charge
5. › Whether equitable charge supports caveat

Quick Take

Receipt for the purposes of the first limb of Barnes v Addy extends to traceable proceeds of trust property and includes receipt by a trustee of a family trust who exercises control over the funds, not merely acting as a depository or channel. Knowing assistance under the second limb can be established where family members stand by with knowledge while trust funds are misapplied through a family trust structure, without requiring proof of a preconceived plan. An oral promise to sell property to guarantee repayment, made in consideration for the advance of funds, can create an equitable charge sufficient to support a caveat.