| Restrictions | Includes non-publication order |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 34A/10 |
| Hearing date | 27 Jul 2010 |
| Determination date | 29 July 2010 |
| Member | R Arthur |
| Representation | A Lubbe ; no appearance |
| Location | Auckland |
| Parties | ANZ National Bank Ltd v Hussain |
| Summary | BREACH OF CONTRACT – REMEDIES – No appearance for respondent – In earlier determination Authority found respondent repeatedly breached credit risk policy of applicant. Applicant involved in situations where recommended unconditional approval of mortgage applications later found to be part of scheme by borrowers then defaulting on loans – Authority earlier found respondent caused losses to applicant by failing to exercise proper diligence in carrying out duties – Leave was reserved for further investigation to quantify and determine damages – Applicant sought damages up to value of excess would be liable under insurance policy if criminal convictions secured for fraudulent activity that resulted in loss – Applicant claimed no prospect of mitigating losses as defaulting borrowers adjudged bankrupt last year – Authority found losses suffered by applicant would probably not have ensued but for respondent’s conduct – Found types of losses suffered reasonably foreseeable as consequence of respondent’s breaches of duties to properly verify documentation before recommending loan approvals – Damages – Authority found bank entitled to damages for losses suffered being difference between loans to borrowers and what later realised in mortgagee sales of properties, interest on loans, and expenses – Respondent ordered to pay applicant $1,282,051 as special damages – COSTS – Respondent ordered to pay applicant $4,000 as reasonable contribution to costs – Mobile Mortgage Manager |
| Result | Application granted ; Damages ($1,282,051.00) ; Costs in favour of applicant ($4,000.00) |
| Main Category | Breach of Contract |
| Statutes | ERA Second Schedule cl10;ERA Second Schedule cl12 |
| Cases Cited | ANZ National Bank Ltd v Hussain unreported, R Arthur, 28 Jan 2010, AA 34/10;Attorney-General v Gilbert [2002] 1 ERNZ 31 ; [2002] 2 NZLR 342;Medic Corporation v Barrett (no 2) [1992] 3 ERNZ 977 |
| Number of Pages | 5 |
| PDF File Link: | aa 34a_10.pdf [pdf 17 KB] |