Khan as Trustee for The Khan Family Trust v Hadid; Hadid v Khan as Trustee for The Khan Family Trust (No 2) [2008] NSWSC 119

New South Wales Supreme Court

CITATION : Khan as Trustee for The Khan Family Trust v Hadid; Hadid v Khan as Trustee for The Khan Family Trust (No 2) [2008] NSWSC 119 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 12 March 2007-16 March 2007, 19 March 2007-23 March 2007, 27 March 2007-30 March 2007, 2 April 2007-4 April 2007, 4 June 2007-7 June 2007

JUDGMENT DATE : 22 February 2008

JURISDICTION : Common Law

JUDGMENT OF : Rothman J

The Court directs: DECISION : (i) the plaintiff in each proceeding to file orders to reflect these reasons; (ii) parties have liberty to address on the calculation of damage and on an appropriate order for costs; (iii) in 20052/2003, the third cross-claimant and the first cross-defendant to the third cross-claim have liberty to file written submissions within 14 days, as advised, on the effect, if any, of the findings of fact on the resolution of the third cross-claim.

CATCHWORDS : REAL PROPERTY – Torrens System – indefeasibility of title – equitable mortgage – registered mortgage – forgery – fraud - MORTGAGOR and MORTGAGEE – construction of mortgage – equitable mortgage – registrable on default – fraud in registration – indefeasibility - TRADE PRACTICES – misleading and deceptive conduct – Fair Trading Act – solicitor's attestation of forgery – solicitor's representation of instructions when not received – trade and commerce activity – reliance.

Civil Liability Act 2002 LEGISLATION CITED : Fair Trading Act 1987 Real Property Act 1900

CATEGORY : Principal judgment

Assets Co v Mere Roihi [1905] A.C. 176 Bahr v Nicolay [No 2] [1988] HCA 16; (1988) 164 CLR 604 Breskvar v Wall [1971] HCA 70; (1971) 126 CLR 376 Butler v Fairclough [1917] HCA 9; (1917) 23 CLR 78 Chandra v Perpetual Trustees Victoria [2007] NSWSC 694 Clements v Ellis [1934] HCA 18; (1934) 51 CLR 217 Concrete Constructions (NSW) Pty Ltd v Nelson [1990] HCA 17; (1990) 169 CLR 594 Davis v Williams [2003] NSWCA 371 Fabre v Arenales (1992) 27 NSWLR 437 Frazer v Walker [1967] 1 AC 569 Garofano v Reliance Finance (1992) 5 BPR 11,941; [1992] NSWConvR 59,659 Gibbs v Messer [1891] AC 248 Grgic v ANZ Banking Group (1994) 33 NSWLR 202 CASES CITED : Henville v Walker [2001] HCA 52; (2001) 206 CLR 459 Hornsby Building Information Centre v Sydney Building Information Centre [1978] HCA 11; (1978) 140 CLR 216 Jones v Dunkel [1959] HCA 9; (1959) 101 CLR 298 Masters v Cameron (1954) 91 CLR 353 Menmel Pty Ltd v The Great Australian Bite Pty Ltd (1997) ATPR 41-553 Parkdale Custom Built Furniture v Puxu Pty Ltd [1982] HCA 44; (1982) 149 CLR 191 R v Burdett (1820) 4 B & Ald 95; 106 ER 873 RPS v R [2000] HCA 3; (2000) 199 CLR 620 Schaverien v Morris (1921) 37 TLR 366 Schultz v Corwill Properties (1969) 90 WN (Pt 1) (NSW) 529 State Bank of New South Wales v Yee (1994) 33 NSWLR 618 Waimiha Sawmilling Co v Waione Timber [1923] NZLR 1137; [1926] A.C. 101 Wicks v Bennett [1921] HCA 57; (1921) 30 CLR 80 Williams v Davis [2003] NSWSC 453 Yorke v Lucas [1985] HCA 65; (1985) 158 CLR 661