Reference no: EM133903932

Question

Daniel and Mark were close friends who began collaborating in 2019 to acquire and develop residential properties. Their working relationship was informal and undocumented. It was agreed that Daniel would provide the capital and be registered on title, while Mark would manage the development work. They agreed to share profits equally, although no formal partnership or trust was created.

In 2022, they acquired 15 Lawson Street, Birchgrove. The property was purchased in Daniel's name alone. The property is now valued at over $3 million.

In December 2024, Daniel separated from his wife, Lauren. She subsequently commenced proceedings in the Federal Circuit and Family Court of Australia (FCFCOA) seeking property settlement orders. Her application includes 15 Lawson Street as part of the matrimonial asset pool.

In March 2025, Mark commenced proceedings in the Supreme Court of New South Wales, seeking a declaration that Daniel holds the property on constructive trust for both of them in equal shares.

Daniel is now considering whether it would be possible to have the Supreme Court proceedings brought by Mark transferred to the FCFCOA so that both sets of proceedings involving the same property could be heard together. He has not yet filed any application to do so.

You are asked to advise Daniel.

Explain:

1. Whether Daniel may apply to have the Supreme Court proceedings transferred to the FCFCOA;
2. The legal basis and procedural mechanism by which such an application could be made;
3. Whether the FCFCOA would have jurisdiction to determine all of the issues raised in both proceedings; and
4. Whether such an application is likely to succeed, and what considerations the court would take into account in deciding it.

This is a Practice and Procedure question (LPAB Law).