Vella v Permanent Mortgages [2008] NSWSC 505

This case involved forged mortgages over properties owned by Alex Vella whom Justice Young euphemistically described as “national president of a group of motor bike enthusiasts known as the Rebels”.

The mortgages were forged by a Tony Caradonna and fraudulently witnessed by his cousin – then registered solicitor Lorenzo Flammia. Despite the fraud the two lenders would have been protected and obtained indefeasible mortgages (with the Torrens Assurance Fund the only loser) but for the fact they were using all monies mortgages. This meant their mortgages were unenforceable.

Bransgroves Lawyers continually warns lenders not to use all monies mortgages. Despite the raft of recent cases:

  1. Small v Tomasetti [2001] NSWSC 1112
  2. Perpetual Trustees Victoria Ltd v Tsai [2004] NSWSC 745
  3. Permanent Custodians v Yazgi [2007] NSWSC 279
  4. Printy v Provident Capital Limited [2007] NSWSC 287
  5. Chandra v Perpetual Trustees Victoria Ltd [2007] NSWSC 694
  6. Perpetual Limited v Costa [2007] NSWSC 1093
  7. Queensland Premier Mines Pty Ltd v French [2007] HCA 53
  8. Perpetual Trustees Victoria Limited v Ford [2008] NSWSC 29
  9. Perpetual Trustees Victoria Ltd v Van den Heuvel [2008] NSWSC 350
  10. Vella v Permanent Mortgages P/L [2008] NSWSC 505
  11. Provident Capital Ltd v Printy [2008] NSWCA 131
  12. Perpetual Trustees Australia v Richards [2008] NSWSC 658

lenders continue to ignore the peril of using all monies mortgages. Matthew Bransgroves has been warning lenders since 17 November 2003 (in a College of Law paper on Indefeasibility of Mortgages) not to use all monies mortgages.

In this case a cross-claim was brought against Hunt & Hunt solicitors on the advice of Bransgroves Lawyers by one of the lenders and the court held that Hunt & Hunt were negligent for using an all monies mortgage. Solicitors and in-house counsel reading this should take it as a warning that your continued apathy renders you liable for negligence on the authority of this case.

Click here to read the full judgment

Scroll to Top