Ierino v Gutta

(2012) 43 WAR 372; [2012] WASCA 222

Western Australia Court of Appeal

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Interrogate

Catchwords

1. Equity
2. › Equity of exoneration
3. › Application beyond husband and wife
4. › Whether equity of exoneration applies to unmarried partners
5. › Nature of equity as giving effect to objective intention of parties
1. Equity
2. › Equity of exoneration
3. › Time of assessment
4. › Whether assessed at time of mortgage or at time debt incurred
5. › Line of credit drawn down in stages
1. Equity
2. › Equity of exoneration
3. › Presumption of exoneration
4. › Whether rebuttable presumption or prima facie inference
5. › Significance of use of borrowed funds for sole benefit of one joint debtor
1. Equity
2. › Equitable accounting
3. › Account of proceeds of trust property
4. › Surcharging and falsifying accounts
5. › Equity of exoneration as basis for falsifying disbursement

Quick Take

The equity of exoneration applies to any relationship where the objective intention of the parties is that the burden of a joint debt should fall on one party, not just husband and wife. Where a line of credit is drawn down in stages, the relevant time for assessing the equity of exoneration is when each specific drawdown occurs, not when the original facility was established. The traditional language of 'presumption' of exoneration is better understood as an inquiry into the manifest objective intention of the parties from all the circumstances.