Chan v Zacharia

(1984) 53 ALR 417
(1984) 154 CLR 178
(1984) 58 ALJR 353

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(Judgment by: Dawson J)

Chan
vZacharia

Court:

Judges: Gibbs CJ
Murphy J
Brennan J
Deane J
Dawson J

Legislative References:
Partnership Act 1891 (SA) - 38

Case References:
Featherstonhaugh v Fenwick - (1810) 17 Ves 298; 34 ER 115
Clegg v Fishwick - (1849) 1 Mac & G 294; 41 ER 1278
Clegg v Edmondson - (1857) 8 De G M & G 787; 44 ER 593
Biss v Biss - [1903] 2 Ch 40
Birtchnell v Equity Trustees Executors and Agency Co Ltd - (1929) 42 CLR 384
Griffith v Owen - [1907] 1 Ch 195
Thompson's Trustee v Heaton - [1974] 1 WLR 605
Nicholson v Gander (1909) - 8 CLR 648
Keech v Sandford - (1726) Sel Cas T King 61; 25 ER 223
Trimble v Goldberg - [1906] AC 494
Knox v Gye - (1872) LR 5 HL 656
Bayer v Bayer - 214 NYS 322
Livingston v Commissioner of Stamp Duties (Qld ) - (1960) 107 CLR 411
Canny Gabriel Castle Jackson Advertising Pty Ltd v Volume Sales (Finance) Pty Ltd - (1974) 3 ALR 409; 131 CLR 321
Hugh Stevenson & Sons Ltd v Aktiengesellschaft fur Cartonnagen-Industrie - [1917] 1 KB 842
Bourne v Bourne - [1906] 2 Ch 427
Spence v FC of T - (1967) 121 CLR 273
Knox v Gye - (1872) LR 5 HL 656
Attorney-General v Boden - [1912] 1 KB 539
Manley v Sartori - [1927] 1 Ch 157
Trustees Executors and Agency Co Ltd v FC of T - (1944) 69 CLR 270
Hugh Stevenson and Sons Ltd v Aktiengesellschaft fur Cartonnagen-Industrie - [1918] AC 239
Re Falk - (1892) 18 VLR 589
Rees v Duncan (1900) - 25 VLR 520
Gordon v Gonda - [1955] 1 WLR 885
Amalgamated Television Services Pty Ltd v Television Corporation Ltd - [1969] 2 NSWR 257
Coomber v Coomber - [1911] 1 Ch 723
Birtchnell v Equity Trustees Executors and Agency Co Ltd - (1929) 42 CLR 384
Lees v Laforest - (1851) 14 Beav 250; 51 ER 283
Bray v Ford - [1896] AC 44
Boardman v Phipps - [1967] 2 AC 46
New Zealand Netherlands Society " Oranje " Inc v Kuys - [1973] 1 WLR 1126
Hordern v Hordern - [1910] AC 465
Smith v Cock - [1911] AC 317
Aberdeen Railway Co v Blaikie Brothers - (1854) 1 Macq 461
Keith Henry & Co Pty Ltd v Stuart Walker & Co Pty Ltd - (1958) 100 CLR 342
Consul Development Pty Ltd v DPC Estates Pty Ltd - (1975) 132 CLR 373
Keech v Sandford - (1726) Sel Cas T King 61; 25 ER 223
Featherstonhaugh v Fenwick - (1810) 17 Ves Jr 298; 34 ER 115
Clegg v Edmondson - (1857) 8 De GM & G 787
Thompson's Trustee v Heaton - [1974] 1 WLR 605; [1974] 1 AllER 1239
Regal (Hastings) Ltd v Gulliver - [1967] 2 AC 134
Griffith v Owen - [1907] 1 Ch 195
Biss v Biss - [1903] 2 Ch 40
Metlej v Kavanagh - [1981] 2 NSWLR 339
Thompson's Trustee v Heaton - [1974] 1 WLR 605
Furs Ltd v Tomkies - (1936) 54 CLR 583
Peso Silver Mines Ltd (NPL) v Cropper - (1966) 58 DLR (2d) 1
Barnes v Addy - (1879) LR 9 Ch App 244

Hearing date: 24, 25 August 1983
Judgment date: 7 June 1984

Canberra

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Judgment by:
Dawson J

I agree with Deane J that the two partners held the lease of the premises and any rights under the lease as trustees for the partnership and after dissolution for the partnership in receivership. Moreover, there was a fiduciary relationship between the partners arising from the partnership which survived its dissolution and extended to the partnership property. The relationship continued for the purposes of the realization, application and distribution of the partnership assets in accordance with the terms of the partnership agreement and any obligations imposed by law. I agree, therefore, with Deane J that both as a trustee and as a former partner Dr Chan is required to account as a constructive trustee for any benefit or gain that he has received in seeking to obtain a new lease for himself in disregard of his position as a trustee of the lease and as a partner in the partnership being wound up.

The appeal should be dismissed.