MAHLO & ORS v WESTPAC BANKING CORPORATION LTD [1999] NSWCA 358

New South Wales Court of Appeal CITATION : MAHLO & ORS v WESTPAC BANKING CORPORATION LTD [1999] NSWCA 358 FILE NUMBER(S) : CA 40740/98 HEARING DATE(S) : 17 June 1999 JUDGMENT DATE : 1 October 1999

John Walter Mahlo, Beverley Annie Mahlo, Wade Walter Mahlo, Brett John Mahlo, Mahlo Trading Pty Limited, Linden Holdings Pty Limited - Appellants PARTIES : Westpac Banking Corporation Limited - First Respondent Jack Crumlin - Second Respondent JUDGMENT OF : Spigelman CJ at 1; Mason P at 25; Sheller JA at 26

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT FILE NUMBER(S) : 1406/96 LOWER COURT JUDICIAL OFFICER : Santow J

COUNSEL : P T Taylor - Appellants S D Rares SC/P J Dowdy - Respondents SOLICITORS : Fisher Grogan - Appellants Henry Davis York - Respondents CATCHWORDS : NEGLIGENCE - negligent missstatement - loan contract - economic loss - whether there was inducement and reliance; TRADE PRACTICES - loan contract - misleading or deceptive conduct; PRACTICE & PROCEDURE - costs - cross-claim - separate action - Court cannot order costs against person not party to the cross-claim ACTS CITED : Trade Practices Act 1974 Contracts Review Act 1980 Amon v Bobbett [1889] 22 QBD 543 Atlas Metal Co v Miller [1898] 2 QB 500 Caltex Oil (Australia) Pty Limited v The Dredge 'Willemstad' (1976) 136 CLR 529 Caparo Industries plc v Dickman [1990] 2 AC 605 Dominelli Ford (Hurstville) Pty Limited v Karmot Auto Spares Pty Limited (1991) 38 FCR 471 Gould v Vaggelas (1985) 157 CLR 215 Grapulin v Cartons & Corrugated Papers Pty Limited (1961) SR (NSW) 348 Hill v Van Erp (1997) 188 CLR 159 CASES CITED: Huntsman Chemical Company Australia Limited v International Pools Australia Limited (1995) 36 NSWLR 242 Medway Oil and Storage Company Limited v Continental Contractors Limited [1929] AC 88 Millican v Tucker [1980] 1 WLR 651 Murphy v Brentwood District Council [1991] 1 AC 398 Perre v Apand Pty Limited (1999) HCA 36 Pyrenees Shire Council v Day (1998) 192 CLR 330 Riochet Pty Limited v Equity Trustees (1993) 41 FCR 229 at 234 San Sebastian Pty Limited v The Minister (1986) 162 CLR 340 The King v Murray & Cormie (1916) 22 CLR 437 DECISION : 1. The plaintiffs' appeal against the order that Brett Mahlo pay any part of the costs of the cross-claim be allowed but otherwise the appeal be dismissed; 2. Set aside order 14 made by Santow J on 6 February 1998 and in lieu thereof order; "14. That the plaintiffs pay the first defendant's costs of the plaintiffs' claim against the first defendant including reserved costs on a solicitor and own client basis and the cross-defendants pay the cross-claimant's costs of the cross-claim on a solicitor and own client basis including reserved costs. "; 3. The appellants to pay four-fifths of the respondent's costs of the appeal.