Please note we have written another case note on an earlier decision in this matter. Click here to view the earlier decision.
The bank successfully sued a solicitor on a forged mortgage and loan for being complicit in the fraud. These proceedings concerned the solicitor’s liability for the bank’s costs in their unsuccessful action against the mortgagors and the mortgagors claim for costs.
The court held that the justice of the case required the fraudulent solicitor to pay:
- the bank’s costs;
- the mortgagors ordinary costs in defending the bank claim against them;
- the mortgagors ordinary costs in their cross-claim against him;
- Lawcover’s costs in their cross-claim against him.
The court noted that the solicitor was responsible for the bank’s loss and their inability to recover from the mortgagors. However the court refused to give the mortgagees’ their indemnity costs because it did not find the bank’s rejection of their settlement offer to be unreasonable.