Persons associated with the borrower lodged three caveats which were removed by the court. The lender sought compensation against each caveator on the grounds each had been lodged without reasonable cause.
The court found the caveats were lodged with the intention of frustrating the sale. However the lender failed in respect of one caveat by suing the wrong entity, the director rather than the company. The court found that the compensation is payable by the caveator and not the agent of the caveator being the person signing the statutory declaration required by the caveat.