Didn’t have to know them well, as the signing thing didn’t give a timeline for how long
you needed to know someone before you knew them.
AGC, where the bank knew of the dodgy actions.
In Grgic, they
were asking in good faith.
RUSSO V BENDIGO BLDG SOC
The Bendigo Bank got security for the mortgage, without Mrs. Russo’s consent.
daughter and son-in-law defaulted on payment.
Bank sought to be paid, Mrs. Russo
found out about the other stuff here.
Mrs Russo’s son in law forged her signature on a
Ms Gerada, a law clerk employed by Reichman, solicitor for the bank, falsely
attested the signature.
Reichman lodged it for reg’n, unaware of the false attestation.
When Bank sued for possession, Mrs Russo argued the mortgage was defeasible for
Vic CA held that G’s conduct was not statutory fraud.
Basically, the court held that the solicitor who took the title to be registered
didn’t know of the fraud, so can’t be fraudulent.
This is the case even though
another solicitor (an employee of the first solicitor) knew of the fraud leading
up to this, but because she wasn’t being dishonest in her own mind, and that
she didn’t mean to affect Mrs. Russo, so she didn’t act fraudulently in the TS
Mrs. Russ had to prove affirmative evidence that the solicitors clerk had understood
what she was doing and the consequences of it.
NIGH ON IMPOSSIBLE!!!!!!
Fraud requires ‘dishonesty or want of probity, a “willful and conscious seeking to defeat
or disregard another’s rights” (or at least recklessness as regards affecting such rights –
G’s false attestation did not amount to fraud, without evidence that she understood the
consequences for the registration process.
AGAIN, distinguished from AGC, as in that case the person was aware of fraudulent
activity also took it to registration place.
FRAUD AND DISHONESTY
– fraud means actual fraud, dishonesty
Test for fraud is subjective (inquiry into the wrongdoer’s motives, knowledge and intent)
, fraud said to mean ‘dishonesty or want of probity, a “willful and conscious
seeking to defeat or disregard another’s rights” [or reckless indifference thereto – per