Reading v Commonwealth Bank of Australia

The case of Reading v Commonwealth Bank of Australia involved a dispute between the plaintiffs, Mr and Mrs Reading, and the Commonwealth Bank of Australia. The plaintiffs sought to challenge the bank's right to possession of their property, which had been mortgaged. They alleged fraud and negligence in the bank's conduct concerning the mortgage. The matter was heard in the Supreme Court of Queensland.

The primary legal issues that the court needed to decide were whether the plaintiffs' amended statement of claim disclosed a cause of action against the bank, and if the bank's knowledge of the fraud was sufficiently established. Additionally, the court had to determine if the plaintiffs could bring an in personam claim against the bank, and if the negligence claim could result in any form of relief beyond damages.

The court found that the plaintiffs' amended statement of claim did not disclose a cause of action against the bank. It was determined that for a cause of action in fraud to be established, actual knowledge of the fraud on the part of the mortgagee must be proven, which the plaintiffs had failed to do. Furthermore, the court held that the plaintiffs could not bring an in personam claim against the bank, as such claims are typically not available against a mortgagee. The negligence claim was also deemed insufficient, as it could only result in a damages award, which was not the relief sought by the plaintiffs.

The court dismissed the plaintiffs' amended statement of claim, finding that it did not disclose any cause of action against the bank. The plaintiffs' application to strike out the amended statement of claim was therefore upheld.