Read the full judgment text of CACV 000046/1998 on BabelCite. This Court of Appeal judgment was delivered on 23 June 1998 before Mortimer, V.-P., Godfrey JA, Rogers JA.
Equity – resulting trust – presumption of advancement – property purchased by mother and conveyed into daughter's name – whether gift to daughter or resulting trust for mother – no presumption of advancement between mother and daughter – burden on donee to prove gift – Evidence – admissibility of subsequent acts and declarations in resulting trust/gift cases – acts or declarations before or at time of purchase admissible for or against maker; subsequent declarations admissible only against maker – Practice – appellate review of credibility findings – Court of Appeal will not disturb trial judge's primary findings based on credibility unless material overlooked – Appeal – bare allegation of multiple errors in findings of fact a sign of weakness – facts of the case concerned a flat at 2E, Happy View Terrace, Hong Kong, where Mrs Watson paid $500,000 to purchase Malcolm's half share and continued to discharge the mortgage, with the conveyance taken in the name of her daughter Rowena – Mrs Watson moved into the flat – Rowena claimed the transfer was a gift intended to advance her inheritance and avoid estate duty; Mrs Watson claimed she always intended to retain the beneficial interest – trial judge (Yam J) preferred Mrs Watson's evidence, finding Rowena and Malcolm unreliable, and relied on two letters written by Rowena in June 1990 referring to 'our flat' and the 'sale of our flat in Hong Kong to you' – Court of Appeal (Mortimer V-P, Godfrey and Rogers JJA) held that the trial judge's findings, though not clearly expressed, amounted to a finding that Rowena had not proved a gift – Court of Appeal applied Bennet v. Bennet (1879) 10 Ch. D. 474 and Seddon v. Davidson [1968] 1 WLR 1083 to the burden of proof – Court of Appeal applied Shephard v. Cartwright [1955] A.C. 431 on admissibility of subsequent declarations – appeal dismissed with costs to the 1st respondent.
Legal issues: Whether property was held on resulting trust for mother or as gift to daughter · Admissibility of subsequent acts and declarations in resulting trust/gift cases · Appellate review of credibility findings
Outcome: Appeal dismissed; trial judge's findings in favour of the plaintiff (Mrs Watson) and against the defendant/appellant (Rowena) and dismissal of the counterclaim upheld.