Everard v. Devereaux, (2004) 240 Nfld. & P.E.I.R. 1 (NFTD)

• Judge: Faour, J.
• Court: Supreme Court of Newfoundland and Labrador (Canada)
• Case Date: August 16, 2004
• Jurisdiction: Newfoundland and Labrador
• Citations: (2004), 240 Nfld. & P.E.I.R. 1 (NFTD);2004 NLSCTD 158

Everard v. Devereaux (2004), 240 Nfld. & P.E.I.R. 1 (NFTD);

    711 A.P.R. 1

MLB headnote and full text

Temp. Cite: [2004] Nfld. & P.E.I.R. TBEd. AU.023

James John Everard (plaintiff) v. Susan Devereaux (defendant)

(200201T0387; 2004 NLSCTD 158)

Indexed As: Everard v. Devereaux

Newfoundland and Labrador Supreme Court

Trial Division

Faour, J.

August 16, 2004.

Summary:

The plaintiff and defendant were in an exclusive relationship (engaged) for three years when the defendant won over $750,000 in the lottery. The monies were deposited into a joint account. All assets purchased (properties, GIC's and vehicles) were held as joint owners. The parties separated two years after the lottery win. The defendant claimed ownership of the remaining funds and all assets purchased with the funds. Alternative­ly, the defendant invoked the doctrines of resulting and constructive trusts to deny the plaintiff any portion of the lottery winnings on the ground that he would be unjustly enriched if given an equal share. The plain­tiff claimed joint ownership of the lottery winnings, and, alternatively, a clear intention by the common law spouses to share the windfall. He sought an equal division of the balance of the winnings and assets.

The Newfoundland and Labrador Supreme Court, Trial Division, equally divided the balance of the lottery winnings and assets. The parties were common law spouses who jointly owned the lottery winnings by plac­ing them in a joint account and treating the funds as jointly owned. Given the expressed intention of equal sharing, there was no basis to impose a resulting or constructive trust.

Family Law - Topic 687

Husband and wife - Property rights during and after common law marriage or rela­tionship - Property held jointly - Three years into a common law relationship between a couple engaged to be married, the wife won over $750,000 in the lottery -The funds were deposited into a joint account - Assets purchased with the funds (properties, GIC's, vehicles, etc.) were held as joint owners - Purchase decisions were jointly made and both had full access to the funds - There was a mutual intention to equally share the winnings - Two years after the win, the relationship terminated, partly because of the husband's spending patterns - The wife now claimed that she was the sole legal owner of the remaining funds and all assets purchased with the winnings - Alternatively, she sought the imposition of a resulting or constructive trust to deny the husband any share in the winnings or assets purchased on the basis of unjust enrichment - The Newfoundland and Labrador Supreme Court, Trial Divi­sion, held that the winnings and assets purchased with them were jointly owned and were to be equally shared - There was no basis to impose a constructive or result­ing trust to rebut the presumption of own­ership raised by the existence of legal title, since the clear intention of the parties was joint ownership and equal sharing - See paragraphs 1 to 80.

Family Law - Topic 688

Husband and wife - Property rights during and after common law marriage or rela­tionship - Resulting or constructive trusts - [See Family Law - Topic 687 ].

Family Law - Topic 1001

Common law, same-sex or adult interde­pendent relationships - Common law rela­tionship - What constitutes - The plaintiff and defendant had an exclusive relationship for five years - They were engaged to be married - There was a degree of economic interdependence - They had separate incomes, but the defendant managed their finances - They initially lived in separate residences (both owned by the plaintiff), but the plaintiff eventually moved in with the defendant - They presented themselves to family, friends and the community as a couple and that was how they were per­ceived - The Newfoundland and Labrador Supreme Court, Trial Division, held that a common law relationship was established - See paragraphs 32 to 35.

Family Law - Topic 1006

Common law, same-sex or adult interde­pendent relationships - Resulting or con­structive trusts - [See Family Law - Topic 687 ].

Cases Noticed:

Tanouye v. Tanouye, [1994] 2 W.W.R. 735; 117 Sask.R. 196; 1993 Carswell­Sask 392 (Q.B.), affd. [1995] 3 W.W.R. 55; 128 Sask.R. 48; 85 W.A.C. 48; 10 R.F.L.(4th) 135; 121 D.L.R.(4th) 315 (C.A.), refd to. [para. 32].

Becker v. Pettkus, [1980] 2 S.C.R. 834; 34 N.R. 384; 117 D.L.R.(3d) 257; 19 R.F.L.(2d) 165; 8 E.T.R. 143; 1980 CarswellOnt 299, refd to. [para. 54].

Hollett v. Hollett (1993), 106 Nfld. & P.E.I.R. 271; 334 A.P.R. 271; 1993 CarswellNfld 38; 50 E.T.R. 22; 31 R.P.R.(2d) 251 (Nfld. T.D.), refd to. [para. 57].

Dyer v. Dyer (1788), 2 Cox Eq. Cas. 92; 30 E.R. 42, refd to. [para. 57].

Tulk v. Rose (1986), 61 Nfld. & P.E.I.R. 87; 185 A.P.R. 87; 1986 CarswellNfld 224 (Nfld. T.D.), refd to. [para. 58].

Fancy v. Quilty (1997), 161 Nfld. & P.E.I.R. 296; 497 A.P.R. 296; 1998 CarswellNfld 56; 37 R.F.L.(4th) 409 (Nfld. T.D.), refd to. [para. 59].

Hamilton v. Hamilton (1996), 92 O.A.C. 103; 1996 CarswellOnt 2421 (C.A.), refd to. [para. 62].

Rockwood v. Harding (1979), 8 R.F.L.(2d) 379; 1979 CarswellNfld 15 (T.D.), refd to. [para. 66].

Burke, Re (1992), 104 Nfld. & P.E.I.R. 305; 329 A.P.R. 305; 1992 CarswellNfld 130 (Nfld. T.D.), refd to. [para. 70].

Rathwell v. Rathwell, [1978] 2 S.C.R. 436; 19 N.R. 91; 83 D.L.R.(3d) 289; [1978] 2 W.W.R. 101; 1 E.T.R. 307; 1 R.F.L.(2d) 1; 1978 CarswellSask 129, refd to. [para. 70].

Counsel:

Owen Myers, for the plaintiff;

Tammy L. Drover, for the defendant.

This action was heard on March 18 and 24-26, 2004, at St. John's, Nfld. & Lab., before Faour, J., of the Newfoundland and Labrador Supreme Court, Trial Division, who delivered the following judgment on August 16, 2004.