Vitek & Anor v Taheri & Ors [2013] NSWSC 589

Vitek & Anor v Taheri & Ors [2013] NSWSC 589

The order for the entry of verdict and judgment for Mrs Taheri on the plaintiffs' Summons, and the related order vacating existing costs orders as between the plaintiffs and Mrs Taheri, were set aside on the basis that Mrs Taheri made fraudulent misrepresentations in her 4 April 2007 affidavit about her knowledge of the contract and guarantee at the time it was executed. The plaintiffs were induced by these misrepresentations to enter into the settlement and subsequent consent orders. The misrepresentations were found to be knowingly false, and the equitable remedy of rescission in respect of the agreement and orders is available.

Jurisdiction
Australia
Judgment Date
20 May 2013
Procedural Posture
Equity Division Principal Judgment / Application to Set Aside Consent Orders
Outcome
Consent Orders set aside; matter reinstated for further proceedings
Legal Topics
['setting Aside Consent Orders' 'fraudulent Misrepresentation' 'power of Attorney' 'guarantees' 'inducement to Settle' 'equitable Rescission']
['equity' 'contract Law' 'misrepresentation'] ['setting Aside Consent Orders' 'fraudulent Misrepresentation' 'power of Attorney' 'guarantees' 'inducement to Settle' 'equitable Rescission']

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Procedural Posture

Equity Division Principal Judgment / Application to Set Aside Consent Orders

Legal Issues

  1. 1 ['Whether consent orders made upon a settlement agreement should be set aside due to fraudulent misrepresentations' 'Whether representations made in affidavit were misrepresentations (fraudulent or innocent)' 'Whether plaintiffs were induced by and relied upon those representations to settle litigation']

Ratio Decidendi

The order for the entry of verdict and judgment for Mrs Taheri on the plaintiffs' Summons, and the related order vacating existing costs orders as between the plaintiffs and Mrs Taheri, were set aside on the basis that Mrs Taheri made fraudulent misrepresentations in her 4 April 2007 affidavit about her knowledge of the contract and guarantee at the time it was executed. The plaintiffs were induced by these misrepresentations to enter into the settlement and subsequent consent orders. The misrepresentations were found to be knowingly false, and the equitable remedy of rescission in respect of the agreement and orders is available.

Court Disposition

Consent Orders set aside; matter reinstated for further proceedings

Orders

  • ["The order for verdict and judgment for Mrs Taheri on the plaintiffs' Summons is set aside." 'The order vacating existing costs orders as between the plaintiffs and Mrs Taheri is set aside.' 'The plaintiffs are to pay $100,000 into Court pending further argument on disposition of those monies.' 'The matter is...