Nathan v Williams & Anor

[2020] QCA 138

Queensland Court of Appeal

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For Australian Law.

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Interrogate

Catchwords

1. Equity
2. › Trusts and Trustees
3. › Implied Trusts
4. › Constructive Trusts
5. › Common Intention Constructive Trust
6. › Elements of common intention, detrimental reliance and equitable fraud
7. › Whether common intention constructive trust arose in commercial context of incorporated legal practice
8. › Whether corporate structure precluded imposition of constructive trust
1. Equity
2. › Trusts and Trustees
3. › Implied Trusts
4. › Constructive Trusts
5. › Common Intention Constructive Trust
6. › Detrimental reliance
7. › Whether beneficiary suffered relevant detriment by building up practice assets in reliance on common intention
1. Appeal
2. › General principles
3. › Appellate review of factual findings
4. › Findings based on credibility of witnesses
5. › Whether appellate court may draw inferences from undisputed facts notwithstanding adverse credibility findings
1. Procedure
2. › Civil Proceedings in State and Territory Courts
3. › Judgments and Orders
4. › Orders affecting non-parties
5. › Whether order directly affecting rights of non-party made without joinder constitutes denial of natural justice
6. › Whether liberty to apply cures denial of natural justice

Quick Take

A common intention constructive trust may be imposed over assets held by an incorporated legal practice where the principals agreed to operate separate practices and conducted themselves accordingly, notwithstanding the corporate structure. The relevant detriment for such a trust includes the lost opportunity to have acted differently in conducting the practice (e.g., paying higher wages, minimising asset accumulation) had the principal not relied on the common intention of beneficial ownership. Orders directly affecting the rights of non-parties (such as creditors) cannot be made without joinder, and liberty to apply does not cure the denial of natural justice.