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Indefeasibility of Title – Fraud Involved

June 6, 2017 by Kazi Portolesi Lawyers

 

Cassegrain v Gerard Cassegrain & Co Pty Ltd [2015] HCA 2 (4 February 2015)

A company was the registered proprietor of land in NSW.

The property was transferred to Mr and Mrs Cassergrain as joint-tenants.

The consideration to be paid was money to be deducted from the loan account Mr Cassergrain had with the company. That is, the company purportedly owed Mr Cassergrain money which would be satisfied by payment of consideration.

Mr Cassergrain then transferred the his interest in the property to Mrs Cassergrain for nominal consideration.

Mr Cassergrain was not owed money by the company and in fact he knew there was no money owing by the company.

It was held in the High Court that fraud had taken place and the registration of ownership resulted from fraud.

It was held that there was no evidence Mrs Cassergrain was aware of the fraud.

It was held that:

  1. The share acquired by Mrs Cassergrain as a joint-tenant was indefeasible;
  2. The share transferred to Mrs Cassergrain by Mr Cassergrain was as a tenant-in-common and that this share was registered through fraud as it was acquired through nominal consideration.

Filed Under: Civil Litigation

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