Pioneer Mortgage Services Pty Ltd v Columbus Capital Pty Ltd [2015] FCA 1067

FEDERAL COURT OF AUSTRALIA

Pioneer Mortgage Services Pty Ltd v Columbus Capital Pty Ltd [2015] FCA 1067 Citation: Pioneer Mortgage Services Pty Ltd v Columbus Capital Pty Ltd [2015] FCA 1067

Parties: PIONEER MORTGAGE SERVICES PTY LTD ACN 051 433 491 v COLUMBUS CAPITAL PTY LTD ACN 119 531 252 and PIONEER FIRST AUSTRALIA LTD (FORMERLY PIONEER FIRST LIMITED ) ACN 086 092 613; COLUMBUS CAPITAL PTY LIMITED ACN 119 531 252 and PIONEER FIRST AUSTRALIA LTD ACN 086 092 613 v PIONEER MORTGAGE SERVICES PTY LTD ACN 051 433 491, STEPHEN GREGORY STEFANOWICZ and TUPEIA DANDO PIONEER MORTGAGE SERVICES PTY LTD ACN 051 433 491 v COLUMBUS CAPITAL PTY LTD ACN 119 531 252 and PIONEER FIRST AUSTRALIA LTD (FORMERLY PIONEER FIRST LIMITED ) ACN 086 092 613

File numbers: NSD 1328 of 2014 NSD 526 of 2015

Judge: JAGOT J

Date of judgment: 1 October 2015

Catchwords: CONTRACTS – whether applicant breached contractual obligation to "take such steps and maintain such procedures as would be taken and maintained by a reasonably prudent mortgagee in connection" with the loans – applicant in breach CONTRACTS – whether applicant breached contractual obligation to manage the relevant loans "in an efficient and businesslike manner and in accordance with sound business practices" – applicant vicariously liable for fraud perpetrated by employee – actions of employee undertaken in ostensible pursuit of applicant's business and in apparent execution of authority – applicant breached contractual obligation TRADE PRACTICES – whether applicant engaged in misleading and deceptive conduct by falsely representing that customers had requested redraws – applicant engaged in misleading and deceptive conduct DAMAGES – whether too remote – damage not too remote