FACT SCENARIO (SET IN NSW):

Toby, Ned and Jaffa are friends. Toby has some personal financial wealth. Ned is an engineer. Jaffa is a horticulturalist. Toby wants to form a values-based self-sufficient community where they may all live in harmony. At dinner in December 2014 Toby proposes his plan but is met with scepticism. Ned says: 'I am worried about leaving the security of my job as an engineer.' Similarly, Jaffa remarks: 'What if the whole enterprise fails and we end up with nothing? It's a big risk to take! Plus, I don't like to be away from my family.' Toby reassures them both saying: 'I will find a farm for all of us. We will share in everything equally.' Toby persuades Jaffa and Ned to his plan.

Toby identifies a rural property in Bundanoon ('Blue Farm') as being suitable for their needs. Blue Farm has an existing farmhouse and two other cottages plus a dam and farmland (the farm, farmhouse, cottages and dam are all on the same title). He emails the details to Ned and Jaffa and they agree to purchase Blue Farm. The purchase price is $1 million. Toby contributes $400,000 as a deposit for the purchase with the balance ($600,000) being financed by bank loans taken out by each of Toby, Ned and Jaffa for $200,000, secured by equally ranked registered mortgages over the property (one mortgage given by Toby to lender A, a mortgage from Ned to lender B and a mortgage from Jaffa to lender C). On completion of the sale in January 2015, all are registered as owners (i.e., registered proprietors) as tenants in common of Blue Farm such that Toby owns 3/5, Ned 1/5 and Jaffa 1/5.

Life on Blue Farm commences harmoniously. All three move in (Toby to the farmhouse, Ned and Jaffa each to a cottage) and enjoy living on Blue Farm. Their need to generate income to meet scheduled loan repayments becomes pressing. In February 2015 Jaffa assists by planting a market garden with cash crops which generate an immediate cash flow of $2,000 per week, thus permitting Ned, Jaffa and Toby to meet their loan repayment of $1,200 per month each. The market garden income also permits the group to pay for insurance, electricity and council rates and to pay for necessary investment into further growing their farming business. For example, purchasing seed, livestock and equipment and paying veterinary bills.

The market garden requires irrigation. In addition, part of the property floods during wet periods which wastes water and also renders that land non arable. In March 2015 Ned devises an irrigation system for the market garden and a system of drainage and dams to capture the natural wastewater from the property. Ned and Jaffa work for weeks digging trenches, creating two more dams and laying pipes to implement Ned's plans. Ned also assists Jaffa with the market garden and they replace the fencing and improve the pastures.

Toby does not work on the farm, although he ensures that all bills are paid and manages the community's finances. All financial records for Blue Farm are kept by Toby at the farmhouse including financial statements demonstrating weekly income from the market garden. Remi is a neighbouring landowner wishing to join their community. In April 2015 Remi and Toby agree that Remi will assist by advancing Toby $100,000, Toby will keep this money identifiable and will use it only to cover the electricity bills of Blue Farm. If, by December 2017, any funds cannot be used for electricity bills, Toby will return these funds to Remi.

By July 2015 the community is falling apart. Disgusted by Toby's refusal to do any hard work or manual labour, Ned and Jaffa have left Blue Farm and returned to their previous employment. Ned and Jaffa continue to service their debts to the bank paid out of their current incomes. Toby continues to live in the farmhouse. Remi is similarly completely disillusioned having expected to be part of a 'peaceful and harmonious' community. Ned and Jaffa remark to each other: 'I can't bear to contact Toby(Ned) and 'at least Blue Farm is going up in value' (Jaffa).

In November 2017 a bushfire destroys a small part of Blue Farm, including the farmhouse where Toby lives. Without Ned and Jaffa to maintain the market garden and generate the associated income, Toby is bankrupt and in default of his loan repayments to the bank. Ned and Jaffa agree to the sale of Blue Farm as neither wish to return to the farm. Despite the fire, Blue Farm makes a profit of $2 million, in part because of the improvements made by Jaffa and Ned.

10. On settlement of the sale in December 2017, Ned and Jaffa argue that: 'we did all of the work on Blue Farm! That should be recognised.' Remi similarly asks Toby to repay the $100,000 to which he replies: 'No! I've already spent $20,000 on electricity bills and I need the rest of the money to pay my general creditors'.

QUESTION: Advise Remi, Toby, Ned and Jaffa as to whether they have any equitable personal or proprietary remedies against any party?

- How would you answer this question? Are there any relevant cases as well? I would really prefer if the answers were as detailed as possible please!!! Thank you so much!! :)