Sablebrook Pty Ltd v Credit Union Australia Ltd

The case of Sablebrook Pty Ltd v Credit Union Australia Ltd involved a dispute over the sale of land under a mortgagee's power of sale. The plaintiff, Sablebrook Pty Ltd, was the owner of the land, and the defendant, Credit Union Australia Ltd, was the mortgagee. The issue before the court was whether the defendant breached its statutory duty under section 85 of the Property Law Act 1974 to take reasonable care to ensure the property was sold at market value. The defendant had exercised the power of sale without advertising the land or obtaining a current valuation that took into account recent market movements.

The court had to determine if the sale price of the property reflected its market value at the time of the sale. The defendant had relied on a valuation that was obtained four and a half months prior to the sale, despite evidence indicating an increase in market value. Additionally, the court considered whether the discount applied to the land's value to account for a dispute over access to a swimming pool and the risk of litigation was appropriate. The plaintiff argued that the sale did not reflect the true market value, and it suffered a loss as a result of the defendant's breach of duty.

In reaching its decision, the court found that the defendant did not take reasonable care to ensure the land was sold at market value. The court held that the sale price did not reflect the market value due to the outdated valuation and the failure to advertise the property. The court awarded damages to the plaintiff in the amount of $65,120, representing the loss suffered due to the defendant's breach of its statutory duty. This judgment underscores the importance of adhering to statutory requirements when exercising a mortgagee's power of sale.