Cachia v Westpac Financial Services Ltd

Case [2005] NSWCA 239


CITATION:

Cachia v. Westpac Financial Services Ltd. [2005] NSWCA 239

HEARING DATE(S):

11 July 2005

 
JUDGMENT DATE: 


11 July 2005

JUDGMENT OF:

Giles JA at 6; Hodgson JA at 1

DECISION:

Application for leave to appeal dismissed with costs.

CATCHWORDS:

PROCEDURE - RES JUDICATA - Proceedings for damages for fraud in obtaining judgment - Whether necessary to have judgment set aside.

PARTIES:

Salv Laurence Cachia - claimant
Westpac Financial Services Ltd. - opponent

FILE NUMBER(S):

CA 41041/04

COUNSEL:

Claimaint in person
Mr. R.J. Weber SC for opponent

SOLICITORS:

Mallesons Stephen Jaques, Sydney for opponent

LOWER COURT JURISDICTION:

Supreme Court - Equity Division

LOWER COURT FILE NUMBER(S):

ED 1685/04

LOWER COURT JUDICIAL OFFICER:

Master Macready




                          CA 41041/04
                          ED 1685/04

                          GILES JA
                          HODGSON JA

                          Monday 11 July 2005
CACHIA V. WESTPAC FINANCIAL SERVICES LTD.
Judgment

1 HODGSON JA: In the proceedings which were summarily dismissed by Master Macready, the claimant alleged that a certain judgment in Federal Court proceedings was procured by fraud and he sought damages, being the loss of value of his Federal Court cause of action, the costs he was ordered to pay, and aggravated punitive and exemplary damages.

2 The claimant says the Master was mistaken in his reasons for dismissing the proceedings, because the Master said incorrectly that he was attacking the Federal Court decision whereas he was not doing so. However, the difficulty with that submission is that the claimant cannot obtain damages on the basis that he has lost the value of his Federal Court cause of action or that he should not have been ordered to pay the costs of those proceedings, without having the Federal Court decision set aside, because unless and until that decision is set aside it conclusively establishes that his cause of action had no value and that he was properly ordered to pay costs. Furthermore, aggravated punitive and exemplary damages cannot be recovered in a cause of action for fraud unless some ordinary compensatory damages are established.

3 It is possible to bring proceedings to claim relief on the basis that a previous judgment has been obtained by fraud, but it is necessary in those proceedings to apply to have that judgment set aside, for the reasons I have given; so that ordinarily such proceedings have to be in the Court that actually made the judgment, at least if that Court is a superior court as is the Federal Court.

4 I would add in addition that, in my opinion, the Master gave sound reasons for thinking that the current allegations of fraud could not possibly succeed.

5 For those reasons, in my opinion this application for leave to appeal should be dismissed with costs.

6 GILES JA: I agree and that will be the order.

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Details
AGLC
Cachia v Westpac Financial Services Ltd [2005] NSWCA 239
Case
[2005] NSWCA 239
Decision Date

CaseChat Overview and Summary

The applicant, Mr Cachia, sought leave to appeal against a decision of the Supreme Court of New South Wales. The dispute concerned proceedings for damages allegedly suffered as a result of fraud in obtaining a prior judgment. The primary question before the Court of Appeal was whether it was necessary for Mr Cachia to have the prior judgment set aside before he could pursue a claim for damages based on the alleged fraud.

The Court of Appeal was required to determine whether a claim for damages for fraud in obtaining a judgment could be maintained independently of an application to set aside that judgment. This involved considering the principles of *res judicata* and the integrity of court judgments.

Giles and Hodgson JJA held that a party seeking to recover damages for fraud in obtaining a judgment must first have that judgment set aside. Their Honours reasoned that allowing a collateral attack on a judgment through a claim for damages would undermine the finality of litigation and the principle of *res judicata*. The court applied the established legal principle that a judgment, even if obtained by fraud, remains valid and binding until it is formally set aside by the court that rendered it.

The application for leave to appeal was dismissed with costs.

Orders

Orders of the court

Application for leave to appeal dismissed with costs.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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