Citigroup Pty Limited v Hoocass Pty Limited [2016] NSWSC 656

Citigroup Pty Limited v Hoocass Pty Limited [2016] NSWSC 656

Assuming the pleaded facts to be correct for the motion, the cross-claim pleaded a reasonable cause of action because the alleged misleading valuation could have materially contributed to the cross-claimant's loss through the plaintiff's reliance on it in advancing the loan and later suing on the guarantee. Direct reliance by the cross-claimant on the valuation was not required, and causation was a matter for trial. The pleading therefore was not liable to summary dismissal or strike out, subject to amendment to clarify that no common law deceit claim was made.

Jurisdiction
Australia
Judgment Date
20 May 2016
Procedural Posture
Equity Proceedings; Notice of Motion for Dismissal or Strike Out of a Cross Claim / Interlocutory Application for Summary Disposal or Strike Out
Outcome
The cross-claimant was granted leave to amend the amended statement of cross-claim, and the second and third cross-defendants' notice of motion was otherwise dismissed.
Legal Topics
['strike Out' 'summary Dismissal' 'reasonable Cause of Action' 'misleading and Deceptive Conduct' 'damages' 'causation' 'indirect Causation' 'valuation' 'guarantee']
['civil Procedure' 'trade Practices'] ['strike Out' 'summary Dismissal' 'reasonable Cause of Action' 'misleading and Deceptive Conduct' 'damages' 'causation' 'indirect Causation' 'valuation' 'guarantee']

Case Brief

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Procedural Posture

Equity Proceedings; Notice of Motion for Dismissal or Strike Out of a Cross Claim / Interlocutory Application for Summary Disposal or Strike Out

Legal Issues

  1. 1 ['Whether the amended statement of cross-claim disclosed a reasonable cause of action for the purposes of Uniform Civil Procedure Rules 2005 NSW r 14.28.' 'Whether the cross-claim should be summarily dismissed under Uniform Civil Procedure Rules 2005 NSW r 13.4.' "Whether the alleged misleading and deceptive valuation could causally contribute to the cross-claimant's loss although the cross-claimant did not see or rely on the valuation before executing the guarantee." 'Whether the pleading should be amended to confirm that no common law deceit claim was advanced.']

Ratio Decidendi

Assuming the pleaded facts to be correct for the motion, the cross-claim pleaded a reasonable cause of action because the alleged misleading valuation could have materially contributed to the cross-claimant's loss through the plaintiff's reliance on it in advancing the loan and later suing on the guarantee. Direct reliance by the cross-claimant on the valuation was not required, and causation was a matter for trial. The pleading therefore was not liable to summary dismissal or strike out, subject to amendment to clarify that no common law deceit claim was made.

Court Disposition

The cross-claimant was granted leave to amend the amended statement of cross-claim, and the second and third cross-defendants' notice of motion was otherwise dismissed.

Orders

  • ['ORDER that the cross-claimant be granted leave to amend the amended statement of cross-claim (filed on 11 December 2015) for the purpose of confirming that the cross-claimant makes no claim for damages, at Common Law, on an action in deceit.' 'ORDER that the cross-claimant file and serve, no later than 10 June...