Commonwealth Bank of Australia v Mohamad Saleh & Ors [2007] NSWSC 903

New South Wales Supreme Court

CITATION : Commonwealth Bank of Australia v Mohamad Saleh & Ors [2007] NSWSC 903 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 16/07/07-19/7/07, 23/07/07-26/07/07, 30/07/07-3/08/07, 6/08/07-10/08/07, 13/08/07

JUDGMENT DATE : 28 August 2007

JURISDICTION : Equity Division Commercial List

JUDGMENT OF : Einstein J

DECISION : Plaintiff entitled to declarations and orders as recited in reasons. Short minutes of order to be brought in.

CATCHWORDS : Banker and customer - Elaborate fraud committed against Bank - $7,000,000 proceeds of frauds swiftly disbursed following settlement - Provision to Bank of fabricated financial statements in support of a claim that borrowing company requiring receivables finance facility had in the order of $20,000,000 in sales per year - Fraud perpetrated by a variety of actors - Proceedings including claims in rem, claims for deceit, claims for misleading and deceptive conduct, restitutionary claims for mistaken payment, claims for negligent misstatement - Expert evidence in relation to documentary examination and access to computer deep memory - Consideration of tracing - Principles - Damages - General damages - Consideration of principles underpinning awards of exemplary damages

A New Tax System (Goods and Services Tax) Act 1999 (NSW) Corporations Act 2001 (Cth) LEGISLATION CITED : Evidence Act 1995 (NSW) Fair Trading Act 1987 (NSW) Financial Transactions Reports Act 1992 (NSW) Trade Practices Act 1974 (Cth)

Agip (Africa) Ltd v Jackson [1992] 4 All ER 451 Amalgamated Television Services Pty Ltd v Marsden (No 2) (2003) 57 NSWLR 338 ASX Operations Pty Ltd v Pont Data Australia Pty Ltd (No 1) (1990) 27 FCR 460 Black v S Freedman & Co (1910) 12 CLR 105 Boscawen v Bajwa [1996] 1 WLR 328 Brady v Stapleton (1952) 88 CLR 322 Briginshaw v Briginshaw (1938) 60 CLR 336 Cassell & Co Ltd v Broome [1972] AC 1027 Cox v Smail (1912) VLR 274 Diplock, In re: Diplock v Wintle [1948] Ch 465 Foskett v McKeown [2000] 3 All ER 97 CASES CITED : French Caledonia Travel Service Pty Ltd (in liq), Re: (2003) 204 ALR 353 Frith v Cartland (1865) 71 ER 525 Harris v Digital Pulse Pty Ltd (2003) 56 NSWLR 298 James v Hill [2004] NSWCA 301 James Roscoe (Bolton) Ltd v Winder [1915] 1 Ch 62 Lamb v Cotogno (1987) 164 CLR 1 Moses v Macferlan (1760) 97 ER 676 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 110 ALR 449 Pascoe v Federal Commissioner of Taxation (Cth) (1956) 30 ALJR 402 Pedler v Richardson (unreported, Supreme Court of New South Wales, Young J, 16 October 1997, BC9705263 Stephens Travel Service International Pty Ltd v Qantas Airways Ltd (1988) 13 NSWLR 331 XL Petroleum (NSW) Pty Ltd v Caltex Oil (Australia) Pty Ltd (1985) 155 CLR 448 Watson v Foxman (1995) 49 NSWLR 315