Cachia v Westpac Financial Services Ltd

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.