Mahlo v Westpac Banking Corporation Ltd

Mahlo and others (the plaintiffs) brought proceedings against Westpac Banking Corporation Ltd (the first defendant) and others. The dispute concerned a loan contract and allegations of negligent misstatement and misleading or deceptive conduct. The matter was heard in the Court of Appeal of New South Wales.

The Court of Appeal was required to determine whether the plaintiffs had established inducement and reliance in relation to the alleged negligent misstatement by the bank. It also considered whether the bank had engaged in misleading or deceptive conduct. A further issue concerned the court's power to order costs against a person who was not a party to a cross-claim.

The Court of Appeal found that the plaintiffs had not established inducement and reliance for the negligent misstatement claim. However, it allowed the plaintiffs' appeal in part, specifically concerning the order for costs. The court set aside an earlier order and substituted a new order regarding the costs of the plaintiffs' claim against the first defendant and the costs of the cross-claim. The appellants were ordered to pay four-fifths of the respondent's costs of the appeal.