Bryson V Bryant (1992)
Bryson V Bryant (1992)
Byson v B yant
2. The Facts
After a marriage spanning 60 years, George and Margaret Moate of Sans
Souci died within a few months of each other, each leaving a will. There be-
ing no children to the marriage, Margaret left her "real and personal estate
whatsoever and wherever" to her brother, John Bryson (the appellant). Shortly
after making this will a caveat was lodged in her name asserting an equitable
interest against the title of the couple's home of which George was the sole
registered proprietor. George's will left a life estate to Margaret and the re-
mainder to the Red Cross Society. Margaret died shortly before George, who
was suffering severe dementia in a nursing home. The executors of both wills
agreed to remove the caveat so that the property could be sold and the pro-
ceeds distributed according to the Court's determination.
One of the difficulties of this case was that many of the assertions of the
plaintiff about the extent of Margaret's participation in the purchase and im-
provement of the family home were not supported by any documentary evi-
dence, nor by any witness other than John Bryson himself. Consequently, not
all of these assertions were accepted as fact by the whole bench.
The property in dispute was bought in 1935 for 70 pounds. George had an
electrical business which, due to prevailing economic conditions, failed in
1930 and he secured no more work until 1935. During those five years, John
Bryson claimed that the couple lived off his sister's income as a shoe shop as-
sistant. John also claimed that his sister had received a share of about 75
pounds in his mother's estate in 1941 or 1942, and that this had been spent on
improvements and furnishings in the house. Margaret had been a helper about
the site while George, John and other friends and relatives had built the house.
From the time George secured employment in 1935 until their mutual hospi-
talisation in 1987, she had been a "dutiful"8 wife and housekeeper.
5 The analogy with a joint endeavour, the basis of which had failed, was crucial to the find-
ings of the High Court in Muschimki v Dodds (1985) 160 CLR 583 and Baumgamer v
Baumgariner (1987) 164 CLR 137.
6 Above n l at 122.
7 (1991) 5 A J Fam L 268 at 276.
8 Above nl, per Samuels AJA at 152.
414 SYDNEY LAW REVIEW [VOL 16: 412
Kirby P alone accepted the inference that Margaret had contributed the
money from an inheritance to the family home. He was also the only judge to
infer that her period as the sole breadwinner meant she had contributed finan-
cially, albeit indirectly to the purchase price.9
While Kirby P gave some weight to the fact that Margaret had placed a ca-
veat on the title and made a wil1,lo Sheller JA described this evidence as "non
probative". 11
4. The Appeal
John appealed on three different but related grounds, set out in the judgment
of Kirby P:15
On the basis of the doctrine of resulting trusts, the court should infer a
common intention on the part of George and Margaret to create an
equitable interest for Margaret which was devisable on her death and
which would be upheld against the consciences of both Mr Moate during
his life and later his executors.
In the absence of sufficient evidence of intention to establish a resulting
trust, the court should nevertheless declare a constructive trust as a
remedy for the unconscionable denial by George's executors of
Margaret's equitable interest.
9 Idat 121.
10 Id at 131.
11 Id at 142.
12 (1985) 160CLR 583.
13 Cited by Kirby P above n l at 115.
14 Id at 144.
15 Idat 116.
19941 NOTES 415
George's executors should be compelled to make restitution to
Margaret's estate to prevent the unjust enrichment that would ensue if
they were allowed to retain the benefit of her contributions and labours.
16 Id, per Kirby Pat 122;per Sheller JA at 143; per Samuels AJA at 150.
17 Id at 141-2.
18 Id at 120.
19 Idat 122.
20 (1989) 13 Fam LR 336; (1989) 17 NSWLR 343.
21 Above nl at 149.
22 Id, per Kirby P at 122; per Sheller JA at 142; per Samuels AJA at 151.
416 SYDNEY LAW REVIEW [VOL 16: 412
23 Above n20.
24 Above n5.
25 Above n13.
26 Id at 142.
27 Id at 149.
28 [I9861 Ch 638 at 648.
29 See Graycar and Morgan, above n3 at 30-39.
30 Above n l at 147.
NOTES
the relevant time for examining both the quantum of the contribution and the
intention of the contributor (for the purpose of supporting or rebutting a pre-
sumption of trust) is the time of initial acquisition of the property. In the case
of family homes, it is unrealistic to assume that only contributions made at the
time of purchase reflect the intentions of the parties as far as long term shares
in ownership are concerned. The constructive trust, which takes into account
later contributions, is clearly more appropriate to determining interests in fam-
ily property. Nevertheless, counsel for the plaintiff argued for a resulting trust,
so all three judges examined the doctrine and dismissed it before considering
the constructive trust.
Kirby P31 appears to have merged resulting and constructive trust doctrine,
by citing Lord Bridge in Lloyds Bank PLC v Rosset,32 as authority for the
proposition that there may be exceptional cases where a common intention
formed after acquisition may be relevant to a finding of a resulting trust. Shel-
ler JA cited the same passage33 in respect of the "common intention" con-
structive trust discussed above. Generally, subsequent declarations of
intention are only admissible in any finding of a resulting trust "as admissions
against interest9'.34
Samuels AJA cited Gibbs CJ in Calverley v Green35 to justify a strict view
that "[tlhe relevant time at which the situation of the parties must be examined
is the date of purchase of the property".36
This orthodox requirement may have been appropriate to property transac-
tions of wealthy gentry in the 18th and 19th centuries in England, but it has lit-
tle bearing on the acquisition of the peculiar asset that is the working
Australian family's home. Commonly, family homes are initially acquired
with a very modest deposit and a 30 year mortgage. Over the course of a mar-
riage, the asset is often improved and extended dramatically. The value repre-
sented by the asset at the end of a long marriage is substantially greater than
the initial contribution on acquisition. Indeed, it is hardly realistic to describe
the initial 10 per cent deposit on a block of land as the "acquisition" of a home
when it will take 30 or 40 years to acquire an unencumbered interest. It is
hardly fair to attribute the whole of the funds borrowed on a mortgage to the
person whose name happens to be on the bank's documents, when in reality,
families pool resources to enable the official mortgagor to meet mortgage re-
payments. It makes no common or legal sense to ignore the additions of value
over the course of acquiring that unencumbered interest. This seems particu-
larly unfair given that the Australian family home, being one of the few assets
exempt from capital gains tax, is often the family's principal vehicle for saving.
Time is not the only weakness in the orthodox doctrine. Applying the doc-
trine strictly, Samuels AJA37 and Sheller JA38 held that contributions must be
31 Idatl20.
32 [I9911 1 AC 107 at 132ff.
33 Above nl at 136.
34 Id, per Sheller JA at 137.
35 (1984) 155 CLR 243.
36 Above nl at 149.
37 Id at 149.
38 Id at 142.
418 SYDNEY LAW REVIEW [VOL 16: 412
financial to find a resulting trust. Kirby P was more willing to ascribe an eco-
nomic value to Margaret's domestic services39 but since he was the only one
of the three to accept any of the inferences that Margaret had contributed fi-
nancially, his comments on her non-financial contributions were not essential
to his decision. Kirby P alone inferred that since Margaret was the sole bread-
winner for the five years immediately before the house building began her
earnings were likely to have contributed, albeit indirectly, to the purchase
price.40 The fact that only George's name was on the title reflected no more
than the customs of 1932. "[Ilf the mercantile obsessions of our law require us
to focus exclusively on financial contributions, they are readily to be found in
this case," Kirby P said.41
Sheller JA rejected this inference. He said the property "was registered in
the name of Mr Moate because he paid for it9'.42In the course of argument, no
evidence was led as to where George got the 70 pounds. Samuels AJA also
held that Margaret had made no proven financial contribution to the purchase
price of the property, so no resulting trust could be found in her favour.
Women's non-financial contributions which effectively free up their part-
ners to earn outside income and thereby acquire property, will not warrant any
grant of an equitable interest in that property under the resulting trust doctrine.
This too ignores the way in which a great many Australian families acquire
family assets. In many traditional relationships the partners set out to maxi-
mise family income by dividing up responsibilities. He works outside the
home for money. She keeps house and cares for children (and perhaps takes
on part-time or casual work) and exercises all the economies necessary to en-
able mortgage payments to be met and home improvements to be made. Her
labour is often vital to the acquisition and improvement of the home, yet the
resulting trust doctrine is not equipped to recognise it.
In his concluding remarks on resulting trusts Kirby P cited Parkinson for
the proposition that this doctrine ought nevertheless not lightly be abandoned
"in the rush to confer broad discretions on judgesW.43In my view, the doctrine
of the resulting trust has no useful role to play in Australian family property
law. Its anachronistic requirements render it an entirely inappropriate tool for
finding just and equitable solutions to family property disputes. The more
flexible remedy of the constructive trust is clearly a more appropriate avenue
for examining and resolving family property disputes. Nevertheless, as the
judgments in Bryson v Bryant reveal, and as it will be argued here, the con-
structive trust in its present state of evolution still exposes the homemaking
partner of a relationship to significant disabilities in establishing full proprie-
tary rights in the family home.
39 Id at 122.
40 Idat 121.
41 Id at 126.
42 Id at 142.
43 Id at 122,citing Parkinson, above n6.
NOTES
44 Id, per Kirby P at 122-7; per Sheller JA at 139-142,144, per Samuels AJA at 150-153.
45 (1985) 160 CLR 593 at 614.
46 Idat615.
47 Above n l at 118,119.
48 Idat 137.
49 Id at 150.
50 (1963) 110 CLR 309 at 319.
51 Above nl, per Sheller JA at 137; per Samuels AJA at 150.
52 Meagher, R P and Gummow, W M C, Jacobs' Law of Trusts in Australia (5th edn, 1986).
53 [I9711 1 All ER 952.
54 [I9721 2 All ER 38.
55 Above nl, per Kirby P at 124.
56 Id at 126.
SYDNEY LAW REVIEW [VOL 16: 412
should not lead the court back to family property law of twenty years ago by
the back door of a preoccupation with contributions, particularly financial
contributions,made by claimants of beneficial interests and at the time of the
acquisition of the property in question.
Kirby P cited Muschinski57 as authority for the proposition that constructive
trust reasoning may provide a remedy where the contributions of the parties
included not only "direct contributions in money or labour" but also "indirect
contributions in other forms such as support, home-making and family
care9'.58 (He did not, however, refer to the finding of a "failed joint venture"
which provided the rationale for taking all contributions into account in
Muschinski.) Kirby P supported the inclusion of non-monetary contributions
with evidence that such contributions had been taken into account by the High
Court in Baumgartner v Baumgartner and Mallett v Mallett59 and several
other marriage and de facto relationships cases heard in New South Wales and
Victoria.60 (It must be remembered, however, that some of these decisions
were based on application of statutory provisions, not general principles of the
common law.)
He concluded that Margaret's financial contributions on their own gave her
an equitable interest which the Court would protect by a declaration of a con-
structive trust. But he added: "I would for myself add the very considerable
economic value of the domestic services provided over such a long time by
Mrs Moate in the very house in question".61
Most importantly, Kirby P held that the trust survived her death and inured
to the benefit of her estate, and that it was consequently unconscionable for
George's executors to take the entire estate in disregard of her wishes.62 In
other words, Kirby P found that George held the legal estate as a trustee for
them both as tenants in common -not as joint tenants.
Samuels AJA disagreed entirely. He drew support from a Canadian deci-
sion, Rathwell v Rathwell,63 for the proposition that there must be a causal
connection between Margaret's contributions and the acquisition of the prop-
erty before the Court can determine "whether the 'spouse with title' is to be
accountable as a constructive trusteeW.64He found no such connection in this
case.
A requirement of causality is at least as stringent as the requirement for fi-
nancial contributions at the time of acquisition under the resulting trust doc-
trine. According to this formulation, the constructive trust does no more than
the resulting trust to address the concerns expressed above about the way in
65 Graycar and Morgan, above n3 at 83 cite Woman at Work: Facts and Figures published
by the Women's Bureau in the Department of Employment, Education and Training, for
the fact that in 1987 and 1988 women earned on average 67 per cent of men's wages.
66 Id at 84.
67 Above nl at 139-141.
68 Idat 141.
69 Ibid.
422 SYDNEY LAW REVIEW WOL 16: 412
7. Unjust Enrichment
Since the appellant raised an argument for unjust enrichment, two of the
judges took time to deal with it particularly, but in the result both Kirby P and
Sheller JA found that the principles of unjust enrichment (if any such princi-
ples can be said to exist in Australian law at this point in time) would not offer
a different solution in this case from those of the constructive trust. So in this
respect, Bryson v Bryant takes Australian law no further down "the endless
road to unattainable perfection in the law"72 than Toohey J's suggestion in
Baumgartner73 that unjust enrichment "is as capable of remedy and certain
application as is the notion of unconscionable conduct".
8. Conclusion
The majority decision in Bryson v Bryant shows a continuing reluctance by
the NSW Court of Appeal to till the ground broken by Deane J in Muschinski
70 Id at 144.
71 Ibid.
72 Kirby P above nl at p113, citing Lord Goff of Chieveley in Spiliada Maritime Corpora-
tion v Canrulex Ltd [I9871AC 460 at 488.
73 Above n5 at p1.53.
VOTES 423
v Dodds. The peculiar facts of the case - Mrs Moate was effectively claim-
ing her equitable estate from the grave - may excuse the caution shown by
the majority on this occasion. Nevertheless, the clear inference from the case
is that women still face considerable obstacles in proving an equitable interest
in family assets under general law, because under general law, there is no con-
cept of "family assets".
To establish a resulting trust they must show a financial contribution at the
time title to the property was acquired. To establish a "common intention"
constructive trust they must prove a mercenary motive for their relationship.
To establish a constructive trust based on unconscionability they must prove a
relationship analogous to a commercial venture which had among its aims the
acquisition of property. Proving that any non-financial contributions to this
partnership warrant consideration in determining shares remains a major ob-
stacle to the home-maker.
In his concluding remarks, Samuels AJA said that there was no principle of
law which was capable of producing the result that "a wife would become en-
titled to any property acquired by the husband merely because she had carried
out her role as the home-maker9'.74 He said "[tlo produce such a conclusion
would ... carry the court beyond the furthest confines of judicial activism. ... It
is a matter for the Parliament9'.75
That precisely is the problem. Parliament has indeed addressed the inade-
quacies of the general law as far as property settlements on divorce are con-
cerned by the enactment of section 79 of The Family Law Act 1975. After
almost 20 years of operation, this legislation has encouraged women to be-
lieve they have rights in the family home, but these "rights" arise only by op-
eration of statute. They are not yet recognised in equity except where women
can bring themselves within the restrictive requirements of anachronistic and
in many respects artificial equitable doctrines.
JOELLEN RILEY*
74 Above nl at 153.
75 Ibid.
* Final year student, Faculty of Law, University of Sydney, 1994. Many thanks to Rosalind
Atherton and Barbara McDonald for their helpful suggestions.