Chen v Gu; Chen v Nguyen [2011] NSWSC 1622

Chen v Gu; Chen v Nguyen [2011] NSWSC 1622

Ms Gu fraudulently deprived Mr Chen of his interest in the Penshurst Property by forging his signature and obtaining all sale proceeds without authorisation. There was no credible oral agreement in 2000 for Mr Chen to relinquish his share. Mr Nguyen, the solicitor, was negligent in not verifying the identities of Ms Gu and the person presented as Mr Chen (actually her cousin), and by not ensuring that proper instructions and consent were obtained from both owners. This negligence was a cause of Mr Chen's loss. Mr Nguyen is additionally liable in conversion with respect to the certificate of title, but not the cheques representing the sale proceeds. No liability of the Registrar-General...

Parties
Plaintiff: Hao Chen; First Defendant in the 2007 Proceedings: Hui Qin Gu; Second Defendant in the 2007 Proceedings: Registrar-General of NSW; Defendant in the 2009 Proceedings: Van Uu (Warren) Nguyen
Jurisdiction
Australia
Judgment Date
15 December 2011
Procedural Posture
Civil Property/fraud/negligence/conversion / Final Judgment After Trial
Outcome
Judgment for the plaintiff (Mr Chen) against the first defendant and the solicitor; claim against the Registrar-General stood over; cross-claims dismissed.
Legal Topics
Fraud in Property Transactions, Duty of Care of Solicitor, Forgery and Conversion, Liability of Torrens Assurance Fund, Malicious Prosecution
Real Property Equity Torts Negligence Fraud in Property Transactions Duty of Care of Solicitor Forgery and Conversion Liability of Torrens Assurance Fund +1 more

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Parties

Hao Chen

Plaintiff

Hui Qin Gu

First Defendant in the 2007 Proceedings

Registrar-General of NSW

Second Defendant in the 2007 Proceedings

Van Uu (Warren) Nguyen

Defendant in the 2009 Proceedings

Procedural Posture

Civil Property/fraud/negligence/conversion / Final Judgment After Trial

Legal Issues

  1. 1 Whether the first defendant (Ms Gu) fraudulently deprived the plaintiff of his interest in the Penshurst Property
  2. 2 Whether the first defendant forged documents and signatures concerning the sale and transfer of the property
  3. 3 Whether the plaintiff authorised the sale or the execution of documents by the first defendant

Ratio Decidendi

Ms Gu fraudulently deprived Mr Chen of his interest in the Penshurst Property by forging his signature and obtaining all sale proceeds without authorisation. There was no credible oral agreement in 2000 for Mr Chen to relinquish his share. Mr Nguyen, the solicitor, was negligent in not verifying the identities of Ms Gu and the person presented as Mr Chen (actually her cousin), and by not ensuring that proper instructions and consent were obtained from both owners. This negligence was a cause of Mr Chen's loss. Mr Nguyen is additionally liable in conversion with respect to the certificate of title, but not the cheques representing the sale proceeds. No liability of the Registrar-General...

Court Disposition

Judgment for the plaintiff (Mr Chen) against the first defendant and the solicitor; claim against the Registrar-General stood over; cross-claims dismissed.

Orders

  • First defendant in the 2007 proceedings and the defendant in the 2009 proceedings liable to the plaintiff for the amount of $235,514.93.
  • Claim by the plaintiff against the second defendant in the 2007 proceedings stood over.