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''Muschinski v Dodds'',. was a significant Australian
court A court is any person or institution, often as a government institution, with the authority to Adjudication, adjudicate legal disputes between Party (law), parties and carry out the administration of justice in Civil law (common law), civil, C ...
case, decided by the
High Court of Australia The High Court of Australia is Australia's apex court. It exercises original and appellate jurisdiction on matters specified within Australia's Constitution. The High Court was established following passage of the ''Judiciary Act 1903''. It ...
on 6 December 1985. The case was part of a trend of High Court decisions to impose a
constructive trust A constructive trust is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding a legal property right which they should not possess due to unjust enr ...
where it would be
unconscionable Unconscionability (sometimes known as unconscionable dealing/conduct in Australia) is a doctrine in contract law that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining ...
for a legal owner of property to deny the beneficial interests of another. In this case the Court held it would be unconscionable for Mr Dodds to retain a half share of the property without first accounting for the purchase price paid by Ms Muschinski.


Background


Facts

Ms Muschinski and Mr Dodds were in a ''
de facto relationship ''De facto'' ( ; , "in fact") describes practices that exist in reality, whether or not they are officially recognized by laws or other formal norms. It is commonly used to refer to what happens in practice, in contrast with ''de jure'' ("by la ...
''. In 1976 they purchased a property in Picton as
tenants in common In property law, a concurrent estate or co-tenancy is any of various ways in which property is owned by more than one person at a time. If more than one person owns the same property, they are commonly referred to as co-owners. Legal terminol ...
, intending to develop and use the property. Ms Muschinski paid the purchase price while Mr Dodds was going to renovate the cottage and to pay for a kit house. The development did not go ahead and the couple separated.


Prior actions

Ms Muschinski commenced proceedings in the
Supreme Court of NSW The Supreme Court of New South Wales is the highest state court of the Australian State of New South Wales. It has unlimited jurisdiction within the state in civil matters, and hears the most serious criminal matters. Whilst the Supreme Court ...
seeking a declaration that she was the sole owner. Mr Dodds made a
cross claim A crossclaim is a claim asserted between codefendants or coplaintiffs in a case and that relates to the subject of the original claim or counterclaim according to ''Black's Law Dictionary''. A cross claim is filed against someone who is a co-de ...
for the property to be sold and the proceeds to be divided equally. Waddell J dismissed Ms Muschinski's claim and stood the matter over to determine Mr Dodds' cross claim. Ms Muschinski appealed to the
NSW Court of Appeal The New South Wales Court of Appeal, part of the Supreme Court of New South Wales, is the highest court for civil matters and has appellate jurisdiction in the Australian state of New South Wales. Jurisdiction The Court of Appeal operates purs ...
who dismissed the appeal. Hope JA, with whom Samuels and
Mahoney Mahoney is a surname originally designating the descendants of Mathghamhain. In the early 16th century, during the collapse of the O'Mahony's, three new breakaway dynastic families formed: MacMahon, Mahon and Mahoney (the latter bearing an earldom. ...
agreed, said:
I agree with his Honour's conclusion that (Ms Muschinski) intended to give (Mr Dodds) a one-half beneficial interest in the land, and that this intention was based on the assurances which (Mr Dodds) gave to her and not upon the fulfilment of those assurances.


Judgment

The High Court of Australia found in favour of Ms Muschinski. The majority,
Gibbs Gibbs or GIBBS is a surname and acronym. It may refer to: People * Gibbs (surname) Places * Gibbs (crater), on the Moon * Gibbs, Missouri, US * Gibbs, Tennessee, US * Gibbs Island (South Shetland Islands), Antarctica * 2937 Gibbs, an asteroid ...
CJ, Mason & Deane JJ, held that the legal interests of the parties were subject to a constructive trust to (1) repayment any joint debts (2) repay each of their contributions and (3) any residue was to be distributed in equal shares.
Brennan Brennan may refer to: People * Brennan (surname) * Brennan (given name) * Bishop Brennan (disambiguation) Places * Brennan, Idlib, a village located in Sinjar Nahiyah in Maarrat al-Nu'man District, Idlib, Syria * Rabeeah Brennan, a village located ...
&
Dawson Dawson may refer to: People and fictional characters *Dawson (surname), including a list of people and fictional characters with the name * Dawson (given name), including a list of people and fictional characters with the name Places Antarctica ...
JJ dissented.


See also


Cases Referring to this Case

*''
Baumgartner v Baumgartner Baumgartner (also Baumgärtner, Baumgardner, Bumgardner, Bumgartner or Bumgarner) is a surname of German origin, literally meaning " Tree Gardener". It may refer to: ;Baumgartner surname * Ann Baumgartner (1918–2008), first American female jet p ...
''. *''
Farah Constructions Pty Ltd v Say-Dee Pty Ltd ''Farah Constructions v Say-Dee Pty Ltd'', also known as ''Farah'', is a decision of the High Court of Australia. The case was influential in developing Australian legal doctrines relating to Equity (law), equity, Property law, property, unjust ...
''.


Cases Considered by this Case

*''
Commercial Bank of Australia Ltd v Amadio ''Commercial Bank of Australia Ltd v Amadio'',. is a seminal case in Australian contract law and equity, in which the High Court held that unconscionable dealing due to a lack of knowledge or education and the consequent imbalance in bargain ...
''..


References


External links

*{{cite web, url=http://www.austlii.edu.au/cgi-bin/LawCite?cit=1985+HCA+78 , title=Cases and articles referring to ''Muschinski v Dodds'' , website=LawCite Property case law Equity (law) High Court of Australia cases