Brennan j there was no constructive trust there was a

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Brennan J: There was no constructive trust. There was a conditional gift. Failure of the condition was not enough to affect the equitable title of the man. If the failure of that condition (his contribution) there was a personal obligation but he still retained his proprietary interest in equity. He was not prepared to find a constructive trust because the situation where the condition fails was not unconscionable. Here the parties ceased to pursue their common purpose – unsconscionability is more than unfairness. The flexible remedy of the constructive trust is not so formalist as to place proprietary rights at the discretion of a court. Deane J: This is what happened when the joint project was abandoned. The original purpose is no longer relevant and retention of benefit by the man is inconsistent and therefore unconscionable. The rules about constructive trusts about the collapse of the relationship are analogous to the principles governing the collapse of a commercial venture. There was a constructive trust. [Mason J too] Where a joint venture is frustrated through no fault of the parties and not provided for by K – equity can intervene to ensure that parties receive a proportionate repayment of their original investment. It would be unconscionable for Dodds to retain the benefit in the circumstances. The fact that the constructive trust remains predominantly remedial does not mean that I am indulging in idiosyncratic notion of justice. Mason J: Agrees that there is a constructive trust. A CT arises here because it would be inequitable for him to retain his interest without crediting to M the contributions which she made. There is general principle of proportionate repayment of capital contributions upon repayment of the joint venture which is enough to establish a CT. Elements of the trust from M and D: There must be a joint venture (buying the home, agreement about the arts and crafts businesss etc) – Relationship or endeavour. Joint venture fails through no fault of the parties (must be in a fraudulent sort of way). 5
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It would be unconscionable under the circumstances to retain the benefit. o This CT is imposed on the court regardless of the intention of the parties (contra presumed intent in resulting trusts and intent in common intent CTs). They were each held to hold their equal legal interest on trust to repay: 1. Mortgage (or joints debts relating to the joint venture) 2. Repay respective contributions 3. To be split between them equally. a. Deane J added that some times it would be better to have a proportionate split (not on the facts). Baumgartner v Baumgartner Facts: Started off as an office romance. Leo had been married twice before. When they met Francess was already married and had two children with her husband. F left her husband and the children to live with Leo. They lived together and had a child together. One year into the relationship Leo bought some land and paid the purchase price. The legal title was vested in Leo alone. Leo took out a loan to pay for the house to be built. On a number of
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