Muschinski v Dodds

The case was part of a trend of High Court decisions to impose a constructive trust where it would be unconscionable for a legal owner of property to deny the beneficial interests of another.

[2] 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.

Ms Muschinski paid the purchase price while Mr Dodds was going to renovate the cottage and to pay for a kit house.

[2] Ms Muschinski commenced proceedings in the Supreme Court of NSW seeking a declaration that she was the sole owner.

Hope JA, with whom Samuels and Mahoney JJA 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.