The parties, former common-law spouses, brought competing motions for summary judgment regarding the ownership of their former home.
The applicant had previously transferred his 50 percent joint interest in the property to the respondent gratuitously to protect it from creditors.
The court found that the gratuitous transfer created a presumption of resulting trust, which the respondent failed to rebut, as an intention to defeat creditors is not conclusive evidence of a gift.
The applicant's motion for a declaration of a resulting trust was granted, and the respondent's motion to dismiss or compel undertakings was dismissed.
However, the applicant was ordered to pay the respondent's substantial indemnity costs of $5,000 due to his conduct in the litigation.