Angas Securities Limited v Valcorp Australia Pty Ltd [2011] FCA 190

FEDERAL COURT OF AUSTRALIA

Angas Securities Limited v Valcorp Australia Pty Ltd [2011] FCA 190 Citation: Angas Securities Limited v Valcorp Australia Pty Ltd [2011] FCA 190

Parties: ANGAS SECURITIES LIMITED ACN 091 942 728, BARKER MORTGAGES PTY LTD ACN 106 071 676 and KWS CAPITAL PTY LTD ACN 114 209 808 v VALCORP AUSTRALIA PTY LTD ACN 008 147 671

File number: SAD 172 of 2009

Judge: BESANKO J

Date of judgment: 8 March 2011

Catchwords: TRADE PRACTICES — where applicants conducted mortgage lending businesses — where respondent a valuer retained to value property to be security for loan by applicants — where borrower defaulted — where value of property on forced sale was substantially less than valuation — whether respondent had been negligent — whether respondent had contravened s 52 of the Trade Practices Act 1974 (Cth) and s 56 of the Fair Trading Act 1987 (SA) — whether applicants had relied on the valuation report in entering into transaction — whether applicants were guilty of contributory negligence by failing to make proper enquiries about the borrowers' ability to service the loan — whether first applicant had failed to mitigate its loss — whether respondent should be liable for loss attributable to fall in market value of the property — whether applicants entitled to loss of opportunity damages — whether first applicant entitled to interest under s 51A of the Federal Court of Australia Act 1976 (Cth) from date it received insurance moneys — alternative cases in contract and tort discussed HELD: The respondent's valuation had been prepared negligently and in contravention of s 52 of the Trade Practices Act 1974 (Cth) and s 56 of the Fair Trading Act 1987 (SA). The applicants had been guilty of 25 per cent contributory negligence by failing to make proper enquiries about the borrowers' ability to service the loan. The applicants were entitled to loss of opportunity damages and the first applicant was entitled to interest under s 51A of the Federal Court of Australia Act 1976 (Cth) after date of receipt of insurance moneys.