Solicitor Negligence

Conridge v Flammia [2013] NSWSC 498

The lender had brought proceedings against two solicitors arising out of a loan and mortgage transaction. The borrower had defaulted on the loan, but the lender had not been able to enforce the mortgages as they had been forged. He had been unsuccessful in proceedings against the third party mortgagor and had then brought proceedings …

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Provident Capital v Papa [2013] NSWCA 36

A mother borrowed on the security of her home and on-loaned the money to her son’s business . The son assured his mother that the business was going very well when this was untrue at the time. The introducer was aware of this but not the lender. Being a third party loan, the lender required …

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Provident Capital v Naumovski [2013] NSWSC 40

A husband and wife mortgaged their home for the benefit of their daughter and later refinanced these loans twice. The parents did not receive any of the loan monies and claimed they were the victims of their daughter’s fraud. The lender sued to enforce its mortgage and the borrowers brought a number of defences, including …

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Perpetual Trustees Victoria v Malouf [2012] NSWSC 1119

The son borrowed money on the security of his parent’s house. The parent’s attended their son’s solicitor’s office and his mother transferred her interest to her son and the father and son then granted a mortgage over the house to secure the loan to the son. The documents were not explained to the parents and …

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Pritchard v DJZ Constructions [2012] NSWCA 196

In this Court of Appeal decision several parties executed guarantees. Later one of the guarantors was released. The remaining guarantors claimed to be discharged by the release of the earlier one. The lawA guarantee is discharged when conduct on the part of the creditor has the effect of altering the guarantor’s rights, unless the alteration …

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Bank of Western Australia v McDonald [2012] NSWSC 717

A solicitor and his clients decided to become property developers and borrowed $8.9 million to develop a property at Blue Bay. Things went badly and the bank sought judgment on the guarantees they gave. The clients cross-claimed against the solicitor’s professional indemnity insurance arguing he failed to advise that the partnership agreement between them should …

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Mitchell Morgan Nominees v Vella (No 2) [2012] NSWCA 38

This decision of the Court of Appeal was a follow on from the main decision the Court of Appeal which was handed down on 15 December 2011 which we have already reported on. In that decision the Court of Appeal ruled that Hunt & Hunt was liable for 100% of the damaged caused by its …

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Mitchell Morgan Nominees v Vella [2011] NSWCA 390

This Court of Appeal decision involved a forged mortgage. The lender’s solicitor chose to use an all monies mortgage which meant the mortgage was unenforceable. Had the solicitor used security documents which contained their vital covenants within the registered mortgage, then the mortgage would have been indefeasible and the mortgage would have been enforceable. The …

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Cavenham Pty Ltd v Robert Bax & Associates [2011] QSC 348

In this case a solicitor acting for a commercially naive lender was found to be negligent because he made no enquiry, as to the level of the lender’s financial or business acumen, he made no attempt to ensure the lender understood how insane it was to rely on the borrower to register the mortgage, did …

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Artistic Builders v Nash [2010] NSWSC 1442

The lawyers acted for the vendor on the sale of a property. Half the purchase price was paid on settlement of the sale of the property with the balance to be paid in the following thirty months. The balance was secured by a second mortgage and third and fourth mortgages over other properties. The purchaser …

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