Thompson v Perpetual Trustees Victoria Limited (No 2)

The plaintiffs, Thompson, sought default judgment against the second defendant, Perpetual Trustees Victoria Limited, for originating a mortgage which involved fraudulent activity, including a forged written direction for the payment of funds to a third defendant’s account. The second defendant did not appear or plead any defence, including the Statute of Limitations. The court was required to decide if the requirements of the Uniform Civil Procedure Rules 1999 (UCPR) rule 16.7 were satisfied for the entry of default judgment and if so, the appropriate assessment of damages for the plaintiffs' losses.

The court found that the requirements of UCPR rule 16.7 were met as the second defendant did not appear or respond to the proceedings, and there was no pleading of the Statute of Limitations. The court concluded that the plaintiffs had established their case for damages due to the second defendant's fraud and deceit. The court awarded the plaintiffs general damages for pain and suffering caused by the loss of their home, as well as indemnity costs.

The court ordered that default judgment be entered against the second defendant. The plaintiffs were awarded $700,000 in general damages for the pain and suffering caused by the loss of their home, and the second defendant was ordered to pay the plaintiffs’ costs of the proceedings on an indemnity basis.