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Leo took out a loan to pay for the house to be built

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alone. Leo took out a loan to pay for the house to be built. On a number of occasions F objected to the fact that her name was not on the title, he responded that they were not married. On another occasion he said, I’m doing this for all of us. On another occasion a friend was told: “F knows that its our house once its built.” The lower court regarded the pay packet as ‘pooling of resources together’. From those pooled earnings Leo would deduct household expenses and mortgage repayments. Relationship ended. $10000 worth of furniture went with her. He said on the phone that the furniture is all he was going to get – she replied that that was unfair, and that they had agreed from the very start that they would share the house. Held: It was proper to view the parties as pooling their earnings with a view to living together as a family. The appellants comments on the phone were unconscionable. The assertion, after the relationship had failed, that the property was his solely amounts to unconscionable conduct which attracts the intervention of equity and the imposition of a constructive trust. Leo held the legal title on constructive trust for both himself and F. 1. Venture/relationship or endeavour. 2. Pooling of the resources/contributions together. (Financial contributions and credit for lost wages). 3. Joint venture ends through no fault of the parties. 4. It would be unconscionable to retain the benefit. Parij v Parij Facts: De facto couple lived together for 17 years. She had a daughter from a previous relationship and they had two children together. She adopted his name. There was no pooling of earnings. They had no joint bank account. Each paid for their own household expenses. She stayed home – but did work part time. Because she took care of domestic duties, he was able to 6
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become an accountant and build up a large accounting practice. With the money made he was able to acquire certain assets. They jointly owned the family home. They jointly borrowed to renovate their house. He purchased a second house in a company name and a third house in his own name. Held: Found a Baumgarner Constructive Trust. There is a joint venture. They said that pooling is not required in every case – court can take account of financial and non-financial contributions. The de facto wife’s contribution as homemaker must be recognised in a substantial not token way. By running the home and looking after the children she enabled her husband to be successful as an accountant. In view of the long nature of the relationship and the wife’s role as primary carer of the children she was entitled to the 2 nd and 3 rd houses in proportions of 1/5 and 1/3 respectively. Elements of Baumgartner Constructive Trust 1. Joint venture ( relationship ) in the nature of a relationship or an endeavour.
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