Hung v Aquamore Credit Equity Pty Ltd

The appeal concerned a dispute between the mortgagor, Mr Hung, and the mortgagee, Aquamore Credit Equity Pty Ltd, regarding the mortgagee's exercise of its power of sale. Mr Hung alleged that the mortgagee had failed to act in good faith and take all reasonable care to sell the mortgaged property for not less than its market value. The appeal was heard by the Court of Appeal of New South Wales, comprising Ward P, Macfarlan and Mitchelmore JJA.

The central legal issue before the Court of Appeal was whether the primary judge had erred in finding that the mortgagee had complied with its obligations under section 111 of the *Conveyancing Act 1919* (NSW). Specifically, the court had to determine if the primary judge was correct in accepting the mortgagee's expert valuation evidence over that of the mortgagor, and whether this preference demonstrated a failure by the mortgagee to obtain market value for the property.

The Court of Appeal affirmed the primary judge's decision, finding no error in the preference for the respondents' expert valuation evidence. The court reasoned that the primary judge was entitled to weigh the expert evidence presented and conclude that the mortgagee had taken reasonable steps to ascertain the market value of the property. The weight given to expert evidence is a matter for the trial judge, and in this instance, the primary judge's assessment of the evidence was found to be sound. The court applied the principles that a mortgagee must exercise its power of sale in good faith and with reasonable care to obtain the best price reasonably obtainable at the time of sale.

The appeal was dismissed, and Mr Hung was ordered to pay the costs of Aquamore Credit Equity Pty Ltd.