Tomcsanyi v National Australia Bank Ltd

Lewis Tomcsanyi, the registered proprietor of the Denmark Farm, brought an action against National Australia Bank Ltd (Bank) seeking damages for breach of a settlement deed. The settlement deed was executed on 21 February 2012 to settle a dispute between the parties. Under the terms of the settlement deed, Mr Tomcsanyi's liability to the Bank was reduced to $765,000. Mr Tomcsanyi claims that the Bank breached the settlement deed by issuing automatically generated bank statements which did not reflect the reduced liability. He contends that this breach impeded his ability to refinance the Denmark Farm and pay the Bank the reduced amount due under the settlement deed. The Bank contends that it is not liable for damages for breach of the settlement deed because Mr Tomcsanyi failed to mitigate his losses by making alternative arrangements to pay the Bank the amount due under the settlement deed.

The court was required to determine whether the Bank breached the settlement deed by issuing automatically generated bank statements which did not reflect the reduced liability owed by Mr Tomcsanyi. If so, the court had to determine whether the Bank was liable for damages for breach of the settlement deed. The court also had to consider whether Mr Tomcsanyi had mitigated his losses by making alternative arrangements to pay the Bank the amount due under the settlement deed.

The court held that the Bank breached the settlement deed by issuing automatically generated bank statements which did not reflect the reduced liability owed by Mr Tomcsanyi. However, the court held that the Bank was not liable for damages for breach of the settlement deed because Mr Tomcsanyi failed to mitigate his losses. The court held that Mr Tomcsanyi had an obligation to make alternative arrangements to pay the Bank the amount due under the settlement deed and that he failed to do so. The court held that Mr Tomcsanyi's failure to mitigate his losses was a breach of his obligation under the settlement deed and that this breach prevented him from recovering damages for breach of the settlement deed by the Bank. The court held that the Bank was entitled to payment of the amount due under the settlement deed and possession of the Denmark Farm. The court ordered that Mr and Mrs Tomcsanyi pay the Bank $765,000 and that the Bank be granted possession of the Denmark Farm.