AKTAS & 1 ORS v WESTPAC BANKING CORPORATION LIMITED [2007] NSWSC 1261

AKTAS & 1 ORS v WESTPAC BANKING CORPORATION LIMITED [2007] NSWSC 1261

Westpac's publications of 'Refer to Drawer' occurred on an occasion of common law qualified privilege due to the bank's relationship with payees and collecting banks, notwithstanding the bank's error; therefore, the defamation claims fail. However, Homewise Realty Pty Limited is entitled to damages for breach of contract, as the wrongful dishonour of its cheques caused proved economic loss, subject to mitigation.

Parties
First Plaintiff: Paul Uysal Aktas; Second Plaintiff: Homewise Realty Pty Limited; Defendant: Westpac Banking Corporation Limited
Jurisdiction
Australia
Judgment Date
07 November 2007
Procedural Posture
Civil / Final Judgment After Trial
Outcome
Defamation claims by both plaintiffs dismissed; contract claim by second plaintiff (Homewise) succeeds.
Legal Topics
Qualified Privilege, Trust Account Cheques, Breach of Contract, Damages Economic Loss, Imputations Defamation, Mitigation of Loss
Defamation Contract Banking Law Qualified Privilege Trust Account Cheques Breach of Contract Damages Economic Loss Imputations Defamation +1 more

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Parties

Paul Uysal Aktas

First Plaintiff

Homewise Realty Pty Limited

Second Plaintiff

Westpac Banking Corporation Limited

Defendant

Procedural Posture

Civil / Final Judgment After Trial

Legal Issues

  1. 1 Whether the publication 'Refer to Drawer' on 30 trust account cheques was defamatory of the plaintiffs
  2. 2 Whether the common law defence of qualified privilege applied to the publications
  3. 3 Whether Homewise Realty Pty Limited was entitled to damages for breach of contract due to wrongful dishonour of cheques

Ratio Decidendi

Westpac's publications of 'Refer to Drawer' occurred on an occasion of common law qualified privilege due to the bank's relationship with payees and collecting banks, notwithstanding the bank's error; therefore, the defamation claims fail. However, Homewise Realty Pty Limited is entitled to damages for breach of contract, as the wrongful dishonour of its cheques caused proved economic loss, subject to mitigation.

Court Disposition

Defamation claims by both plaintiffs dismissed; contract claim by second plaintiff (Homewise) succeeds.

Orders

  • Verdict for the defendant in the defamation action brought by the first plaintiff.
  • Verdict for the defendant in the defamation action brought by the second plaintiff.