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Supreme Court of New South Wales |
Last Updated: 8 December 2022
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Supreme Court New South Wales
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Case Name:
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Ibrahim v Ibrahim
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Medium Neutral Citation:
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Hearing Date(s):
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23 November 2022
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Decision Date:
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8 December 2022
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Jurisdiction:
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Equity
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Before:
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Peden J
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Decision:
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(1) The parties to confer with a view to agreeing on orders giving effect
to this judgment.
(2) If they are unable to agree, each party is to provide their version of final orders together with no more than 3 pages of submissions to the Associate to Peden J by 3 February 2023. (3) Liberty to apply on 3 days’ notice. |
Catchwords:
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LAND LAW — Co-ownership — Statutory trust for sale —
Where defendant was a litigant in person — Where defendant
resisted sale
on the basis of an interest in another property not the subject of these
proceedings — Where defendant paid rates
on the subject property and would
be entitled to contribution — Where plaintiff’s proposed trustees
not otherwise opposed
LAND LAW — Co-ownership — Severance of joint tenancy — Where co-owners have not formally severed joint tenancy — Where co-owners’ respective shares of the Property not determined — Where no severance by conduct or agreement |
Legislation Cited:
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Conveyancing Act 1919 (NSW) s 66G
Family Law Act 1975 (Cth) Property (Relationships) Act 1984 (NSW) Real Property Act 1900 (NSW) s 97 |
Cases Cited:
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Callow v Rupchev [2009] NSWCA 148
The Trustees of the Property of Cummins v Cummins (2006) 227 CLR 278 Fenato v Antonello [2006] NSWSC 763 Ferella v Official Trustee in Bankruptcy [2011] NSWCA 411 Forgeard v Shanahan (1994) 35 NSWLR 206 Grizonic v Suttor [2004] NSWSC 137 Kardos v Sarbutt (No 2) [2006] NSWCA 206 Leigh v Dickerson [1881-85] All ER Rep 1099 McDonald v Ellis [2018] NSWSC 278 Pascoe v Dyason [2011] NSWSC 1217 Rajski v Scitec Corporation Pty Ltd (Court of Appeal (NSW), 16 June 1986, unrep) Scott v Scott [2009] NSWSC 567 Woodson (Sales) Pty Ltd v Woodson (Aust) Pty Ltd (1996) 7 BPR 14,685 Wright v Gibbons [1949] HCA 3; (1949) 78 CLR 313 |
Texts Cited:
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Brendan Edgeworth, Butt’s Land Law (7th ed, 2017, Lawbook Co)
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Category:
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Principal judgment
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Parties:
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Mohsen Ibrahim (Plaintiff)
Amal Ibrahim (Defendant) |
Representation:
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Counsel:
C Robinson (Plaintiff) A Ibrahim (Defendant, in person) Solicitors: Cambridge Law (Plaintiff) |
File Number(s):
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2022/82322
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Publication Restriction:
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Nil
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JUDGMENT
(1) whether the joint tenancy has been severed;(2) whether Ms Ibrahim has persuaded the Court that the s 66G orders ought not be made as a matter of discretion; and
(3) the appropriate form of orders, including the identity of the trustees and whether the plaintiff’s costs ought to be paid from the proceeds of sale.
Court’s obligations to a litigant in person
In my view, the advice and assistance which a litigant in person ought to receive from the court should be limited to that which is necessary to diminish, so far as this is possible, the disadvantage which he or she will ordinarily suffer when faced by a lawyer, and to prevent destruction from the traps which our adversary procedure offers to the unwary and untutored. But the court should be astute to see that it does not extend its auxiliary role so as to confer upon a litigant in person a positive advantage over the represented opponent ... At all events, the absence of legal representation on one side ought not to induce a court to deprive the other side of one jot of its lawful entitlement ... An unrepresented party is as much subject to the rules as any other litigant. The court must be patient in explaining them and may be lenient in the standard of compliance which it exacts. But it must see that the rules are obeyed, subject to any proper exceptions. To do otherwise, or to regard a litigant in person as enjoying a privileged status, would be quite unfair to the represented opponent.
Principles concerning s 66G
(1) the property is “held in co-ownership”; and(2) one of the co-owners applies for the order.
[5] The purpose of this section is "to provide a mechanism for terminating the co-ownership [of property] where the co-owners themselves cannot agree on how the co-ownership should be determined": P Butt, Land Law , 6 th ed, 2010 at 265. In Callahan v O'Neill [2002] NSWSC 877, Young CJ in Eq observed:
"It is fairly clear that, as a general rule, any co-owner holding at least 50% of a parcel of real property is entitled almost as of right to an order for partition or sale under s 66G of the Conveyancing Act. It is only in situations where it would, under settled principles, be inequitable to permit such an application, including cases where there has been a contract not to make an application that the order may be refused. This appears from cases such as Ngatoa v Ford (1990) 19 NSWLR 72 and Williams v Legg (1993) 29 NSWLR 687."
[6] Although the Court has a discretion whether or not to make an order under this section, the grounds on which the Court will ordinarily refuse to make it are limited. For example, if it is inconsistent with a proprietary right or a contractual or fiduciary obligation, and there is no general jurisdiction to refuse to grant such an order on the basis of hardship or unfairness: Stephens v Debney (1960) 60 SR (NSW) 468; Re McNamara and the Conveyancing Act (1961) 78 WN (NSW) 1068; Ngatoa & Anor v Ford & Anor (1990) 19 NSWLR 72; Williams v Legg (1993) 29 NSWLR 687; Westpac Banking Corporation v Sansom (1994) 6 BPR 13,790; Woodson (Sales) Pty Ltd v Woodson (Aust) Pty Ltd (1996) 7 BPR 14,685. In Hogan v Baseden [1997] NSWCA 150; (1997) 8 BPR 15,723 at 15,723, Mason P observed that it "would not be a proper exercise of discretion of the power to decline relief under s 66G ... to refuse an application on grounds of hardship or general unfairness." His Honour also noted that:
"[I]n the unhappy event that the parties are unable to settle their differences then the making of an order appointing trustees for sale seems inevitable unless the respondent could establish a legally binding agreement not to put her out of occupation of her home, or circumstances that would ground some estoppel to similar effect." (at [59]).
[7] In Chalhoub v Chalhoub [2005] NSWSC 572 at [17]- [18], McLaughlin AsJ observed that, where a plaintiff and defendant are registered as tenants in common in equal shares, then prima facie the plaintiff is entitled to relief by way of an order under s 66G of the Conveyancing Act for sale of the relevant property and for the division of the net proceeds of such sale between the plaintiff and the defendant in equal shares. It was for the defendant, who denied the plaintiff's entitlement to such relief, to establish that the legal rights of the parties consequent upon their status as registered proprietors as tenants in common in equal shares were in some way altered by the invocation of equitable rights recognised by a Court of Equity or that there was some other reason why the Court should, in the exercise of the limited discretion reposed in it by s 66G of the Conveyancing Act , decline to make an appointment of statutory trustees or sale of the subject property.[8] In Cain v Cain [2007] NSWSC 623 at [9]- [10], Young CJ in Eq noted that the Court will usually consider it appropriate to make an order under s 66G of the Conveyancing Act unless persuaded by cogent arguments from those who oppose. His Honour then noted Counsel's summary of the categories of cases in which the Court has declined to grant such an order as including: where the legal title is held by trustees and the trust instrument contains its own procedure for sale; where the plaintiff's conduct rates as an estoppel against the sale; and where an order would be incompatible with a contractual or equitable duty binding the applicant. In Tory v Tory [2007] NSWSC 1078 at [42], White J noted that an order under s 66G of the Conveyancing Act "is almost as of right unless on settled principles it would be inequitable to allow the application", and observed that an application would be refused if making the order would be inconsistent with a proprietary right or contractual or fiduciary obligation or on the basis of conventional estoppel or equitable estoppel. In Spathis v Nanos [2008] NSWSC 418 at [19]- [20], Jagot AJ observed that the discretion was not at large and is not to be exercised by reference to personal views about hardship or unfairness. The Court of Appeal also noted that the discretion to refuse relief under s 66G of the Conveyancing Act was a "limited one" in Ross v Ross [2010] NSWCA 301 at [36]; see also National Australia Bank Ltd v Pasupati [2011] NSWSC 540 at [20].
Ms Ibrahim’s position
Since 2019 we have tried to mediate over the years to settle both property issues of [the Property] and [the Bass Hill property] but he said to me he will not let me have any shares, and all the years I have been paying everything in the house I’m currently residing in.
Mr Ibrahim denied he would not give Ms Ibrahim her share of the Property. He did not respond in his affidavit to the allegation concerning the Bass Hill Property.
KHALIL: that she wants - doesn’t want to sell the house. I mean, I don’t know if you can - I mean, that’s from her and they’re trying to say the only reason she doesn’t want to because there was, like, there was witnesses and saying, like, she was, like, was said to her that the other house - she had nothing to do with it and if she sells this that she’s - that’s it, like, just only that property and that she’s going to lose everything and the other property.HER HONOUR: So there is something in her affidavit which - is this what you are referring to?
KHALIL: That’s why she - at the end, like, that’s why she didn’t agree about selling the property. Actually, that was in the - was that in the - did you write in the affidavit ... like, was said to her that the other house - she had nothing to do with it and if she sells this that she’s - that’s it, like, just only that property and that she’s going to lose everything and the other property.
DEFENDANT: Your Honour, can I say something. There was a time before we went to look for houses when we wanted to move from the house because the house wasn’t, like, healthy and the area wasn’t healthy. When we went and we tried to get a loan we couldn’t get a loan by then. That’s why I - I save money and bought the house in Base Hill. So that was an investment house. We can sell this, too - both houses - and buy a house in a better area. But all the ideas he comes after - after the Base Hill house. He comes with all the farm idea and all this idea and he already did go then buy - bought land and a farm with his sister and he didn’t put it in his name. He got a loan and he put it in his daughter loan - name. If it wasn’t for me we wouldn’t have a house. If it wasn’t for me would not have a house because I paid. I paid the whole house.
KHALIL: Like I said, your Honour, at the start the only - like, at the start, thinking when they wanted to sell the house because of - like...(not transcribable)..that’s - but you don’t want to actually mention on the witness end, like, he said, “That’s your house. You do what you want with it.” But then there was word - like, she was on the thought that he’ll take the other house and she’ll keep this house. That’s why she was agreeing before with the sale. But then other things, like, there was - you probably understand that there was fights with him - not fights - arguments and disagreement. No, this other house is his and this is the only house that they shared
ROBINSON: I know it’s not my place to interfere here, your Honour, yet. It may be that, in fact, there’s a Muschinski v Dodds situation with other properties.......
HER HONOUR: Yes, Mr Robinson, anything in reply?
ROBINSON: No. Only, your Honour, that what I’ve already said and that is that if - there’s a equitable interest that may be in some other property.
KHALIL: ... she’s going to leave it in the Court’s hand now, like, and she keeps saying God as well ...HER HONOUR: But has she heard that even if this order is made she may have rights.
KHALIL: I’ll advise her.
...
HER HONOUR: She may have rights. I do not know. I am not telling her she does. But she should investigate with people who can help her as whether she has rights in other places about anything else. But all I’m being asked to decide is about one particular property where the title says they both own it.
Because I trusted him. I didn’t know. Because, like, we were living in a relationship as marriage and as a Muslim, you supposed to just look after your kids and listen to whatever he said, like, I had no say.
However, she did not give any evidence of conversations or any agreement between the parties or any reliance she placed on anything Mr Ibrahim had ever said.
Apart from questions of improvements and occupation fees, which arise from the relationship of co-owners, it will also often happen that co-owners are joint debtors (for example, on a mortgage, or because rates are levied on the property). If one co-owner pays such a debt in full he is entitled to require the other co-owner to contribute a rateable amount; at least that is the prima facie position. In this regard the parties' rights arise from the equitable doctrine of contribution, not from the law of property (see Gibbs CJ in Muschinski v Dodds [1985] HCA 78; (1985) 160 CLR 583 at 596-597), that is, they would apply in the case of all joint debts even if the debtors owned no property.
Has the joint tenancy been severed?
Strictly speaking, joint tenants do not have proportionate shares in the land. It might therefore be asked how a joint tenant can convert his or her entitlement in the entire estate or interest into a proportionate share held as tenant in common. But for the purpose of severance a joint tenant is regarded as having a potential share in the land commensurate with that of the other joint tenants. Where there are two joint tenants, that potential share is one-half; where there are three joint tenants, it is one-third and so on. This potential share the joint tenant can deal with unilaterally during his or her lifetime. By so dealing with it, that share may be “severed” from the other shares and converted into an “aliquot” undivided share held in common, not jointly.
See also The Trustees of the Property of Cummins v Cummins (2006) 227 CLR 278 at 298 (Gleeson CJ, Gummow, Hayne, Heydon and Crennan JJ).
Q. You wanted to sell the house in 2015. That’s correct?A. When we - yeah. We wanted to sell the house.
Q. And in 2016 when he came to you and said, “Look, I want to buy a property in Goulburn. I need to‑‑"
A. No, no. It wasn’t - I think - sorry, when he wanted to sell the house it was before that. We - he wanted to sell the house to buy the farm.
Q. Let me suggest to you that, in fact, what he said to you is, “I want to borrow money. I want to borrow money to buy the house in - buy a property in Goulburn.” Just do your best to remember what was said and tell me whether that’s true or not.
A. We never agreed to sell the house to buy the farm.
Trustees
Costs
Orders
(1) The parties are to confer with a view to agreeing on orders giving effect to this judgment.(2) If they are unable to agree, each party is to provide their version of final orders together with no more than 3 pages of submissions to the Associate to Peden J by 3 February 2023.
(3) Liberty to apply on 3 days’ notice.
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