Perpetual Trustees Victoria Limited v Peter Van den Heuvel No 2

The matter of Perpetual Trustees Victoria Limited versus Peter Van den Heuvel No 2 was heard in the Supreme Court of Victoria. The case concerned the fraudulent execution of a mortgage by one joint tenant, leading to the loss of the other joint tenant's interest in the property. The dispute centred on the extent of compensation from the Torrens Assurance Fund that the plaintiff, Perpetual Trustees Victoria Limited, could claim for the loss of their interest in the property, which was secured by a mortgage. The case also examined the potential severance of the joint tenancy and the impact of a judgment for possession on the measure of damages.

The court was required to decide whether the loss of the other joint tenant's interest in the property constituted a "loss of interest" for the purposes of the Real Property Act 1900 (Vic). Additionally, the court needed to determine if the severance of the joint tenancy could be considered a relevant event for the purposes of the Act. The court also considered whether the judgment for possession itself was a relevant event, and if so, what the measure of damages would be.

The court found that the loss of the other joint tenant's interest in the property did constitute a "loss of interest" for the purposes of the Real Property Act 1900 (Vic). The court held that the severance of the joint tenancy was a relevant event, and therefore, the plaintiff was entitled to compensation from the Torrens Assurance Fund. The court also determined that the judgment for possession was a relevant event, and the measure of damages would be the value of the interest lost by the plaintiff, which was secured by the mortgage. The court held that the loss of the other joint tenant's interest in the property, as a result of the fraudulent execution of the mortgage, constituted a "loss of interest" for the purposes of the Real Property Act 1900 (Vic). Consequently, the plaintiff was entitled to compensation from the Torrens Assurance Fund. The court awarded damages to the plaintiff in the amount of $1,000,000, representing the value of the interest lost by the plaintiff as a result of the fraudulent execution of the mortgage.