Mitchell Morgan Nominees Pty Ltd & Anor v Vella & Ors [2011] NSWCA 390

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Mitchell Morgan Nominees Pty Ltd & Anor v Vella & Ors [2011] NSWCA 390 Hearing dates: 8, 9, 10 November 2011 Decision date: 15 December 2011 Before: Bathurst CJ at [1], Giles JA at [5], Campbell JA at [94], Macfarlan JA at [101], Sackville AJA at [102] Decision: The parties to provide agreed short minutes of orders no later than 30 January 2012, in default of agreement their respective short minutes and written submissions of no more than three pages in support thereof within the same time. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Courts computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: PROPORTIONATE LIABILITY - loan and mortgage transaction - fraudsters forged signatures of purported borrower/mortgagor - mortgage registered but lender's interest not indefeasible as security for loan amount - fraudsters liable to lender for fraud - lender's solicitors liable to lender for negligence in failing to word mortgage so as to be indefeasible as security for loan amount - whether solicitors concurrent wrongdoer together with fraudsters within Pt 4 of Civil Liability Act 2002 - whether fraudsters' acts or omissions caused the damage or loss the subject of lender's claim against solicitors - lender's claim a claim for economic loss - difference between damage and damages - identification of economic interest harmed - "mutual discharge test"- same loss not caused by respective wrongdoings- consideration of St George Bank Ltd v Quinerts Pty Ltd [2009] VSCA 245; (2009) 25 VR 666 - solicitors not concurrent wrongdoer. Legislation Cited: Civil Liability Act 2002 Real Property Act 1900 Wrongs Act 1958 (Vic) Cases Cited: Alexander v Perpetual Trustees WA Ltd [2004] HCA 7; (2004) 216 CLR 109; Ashbrooke Institute Pty Ltd v Bartone Biomedical Pty Ltd [2010] VSC 579; Astley v Austrust Ltd [1999] HCA 6; (1999) 197 CLR 1; Baxter v Obacelo Pty Ltd [2001] HCA 66; (2001) 205 CLR 635; Bracks v Smyth-Kirk [2009] NSWCA 401; (2009) 263 ALR 522; Bryan v Maloney (1995) 182 CLR 609; Farah Constructions Pty Ltd v Say-dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89; Ghunaim v Bart [2004] NSWCA 28; Howkins & Harrison v Tyler (2001) Lloyd's Rep PN I; Hurstwood Developments Ltd v Motor and General & Andersley & Co Insurance Services Limited [2001] EWCA Civ 1785; Mahoney v J Kruschich (Demolitions) Pty Ltd (1985) 156 CLR 522; Podrebersek v Australian Iron & Steel Pty Ltd (1985) 59 ALJR 492; Royal Brompton Hotel NHS Trust v Hammond (2002) 1 WLR 1397; Small v Tomasetti [2001] NSWSC 1112; St George Bank Ltd v Quinerts Pty Ltd [2009] VSCA 245; (2009) 25 VR 666; Tillman v Attorney-General for the State of New South Wales [2007] NSWCA 327; (2007) 70 NSWLR 448; Vinidex Tubemakers Pty Ltd v Thiess Contractors Pty Ltd [2000] NSWCA 67; Wallace v Litwiniuk [2001] ABCA 118; Wynbergen v Hoyts Corporation Pty Ltd (1997) 72 ALJR 65. Category: Principal judgment Parties: Mitchell Morgan Nominees Pty Ltd - First and Second Appellants Hunt & Hunt Lawyers - Second Respondent Representation: B A Coles QC & S B Docker - Appellants Mitchell Morgan Nominees Pty Ltd J Stevenson SC & N Kabilafkas - Second Respondent Mills Oakley - Appellants Mallesons Stephen Jaques - Second Respondent File Number(s): CA 2009/298381 Decision under appeal Citation: Vella v Mitchell Morgan Nominees Pty Ltd [2008] NSWCA 511