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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 IN THE HIGH COURT OF FIJI AT SUVA
\par CIVIL JURISDICTION
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 CIVIL ACTION NO. HBC 0427 OF 1998
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 BETWEEN:}{\lang2057\langfe1033\langnp2057\insrsid4535767\charrsid4535767 
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\lang2057\langfe1033\langnp2057\insrsid4535767 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 NBF ASSET MANAGEMENT BANK
\par }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Plaintiff
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 AND:}{\lang2057\langfe1033\langnp2057\insrsid4535767\charrsid4535767 
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\lang2057\langfe1033\langnp2057\insrsid4535767 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 GEORGE NIUMATAIWALU
\par }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 1st Defendant
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 AND:}{\lang2057\langfe1033\langnp2057\insrsid4535767\charrsid4535767 
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\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 IANG NG
\par }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 2nd Defendant
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par COUNSEL:}{\lang2057\langfe1033\langnp2057\insrsid4535767\charrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Mr T. Seeto for Plaintiff
\par }{\lang2057\langfe1033\langnp2057\insrsid4535767\charrsid4535767 :}{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Ms P. Narayan for Defendants
\par 
\par Hearing:}{\lang2057\langfe1033\langnp2057\insrsid4535767\charrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 18th January 2000
\par 
\par Judgment:}{\lang2057\langfe1033\langnp2057\insrsid4535767\charrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 24th January 2000
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\lang2057\langfe1033\langnp2057\insrsid4535767\charrsid4535767 JUDGMENT}{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par This is an Order 88 application for vacant possession of property at 116 Mead Road Suva, which is currently occupied by the 1st and 2nd Defendants.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 The application, made by summons dated 1st September 1998, is supported by the affidavit of Laisenia Takala sworn on 14th August 1998.
\par 
\par Order 88 Rule 3 of the High Court Rules 1988, provides that:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 \'93(2) The affidavit must exhibit a true copy of the mortgage and the original mortgage .....

\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 (3) Where the plaintiff claims delivery of possession the affidavit must 
show the circumstances under which the right of possession arises and, except where the Court in any case or class otherwise directs, the state of the account between the mortgagor and mortgagee with particulars of - ..........
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li1440\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin1440\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 (a)\tab the amount of the advance;
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li1440\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin1440\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 (b)\tab the amount of the periodic payments required to be made;
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li1440\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin1440\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 (c)\tab 
the amount of any interest or instalments in arrears at the date of issue of the originating summons and at the date of the affidavit; and
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li1440\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin1440\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 (d)\tab the amount remaining due under that mortgage.\'94
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par The affidavit of Laisenia Takala deposes that Sorovi Vula Fuakilau and Litia Niumataiwalu Fuakilau are the registered proprietors of 116 Mead Road, Suva.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 By mortgage, the property was charged to the Plaintiff.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
At the time of the swearing of the affidavit the amount due under the mortgage was $126,567.58.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
Additional personal loans were advanced to Sorovi Fuakilau and Litia Fuakilau between 25th August 1980 to 7th February 1995.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
At 31st August 1998 $24,210.00 was in arrears in respect of the personal loans.
\par 
\par The affidavit states that the 1st and 2nd Defendants reside on the property, that no tenancy had been created, that interest payable was $55.49 per day and that on 8th August 1998, due to default in payment, the Plaintiff advertised the property for sale.
}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par 
\par The affidavit complies with the requirements of Order 88.
\par 
\par On 10th February 1999 the 1st Defendant filed an affidavit in reply on behalf of both Defendants.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
In that affidavit, he deposes that after the mortgagee sale of the property was advertised, he instructed his solicitors, Messrs. Sherani & Co. to put in a tender for the property for the sum of $107,000.00.}{
\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 He states that the Plaintiff accepted a tender in the sum of $90,000 \'93fraudulently.\'94}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Particulars of fraud are:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 \'93(i)\tab Accepting a tender for a lesser sum when higher tender was available;
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4535767 (ii)\tab }{\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
Delaying the sale by accepting a lower tender of a person known to the Plaintiff and arranging vacant possession when this would not be necessary if the property was sold to me;
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 (iii)\tab Accepting a lesser sum is fraudulent on the mortgagors as they would be
 responsible for the balance;
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4535767 (iv)\tab }{\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
The Plaintiff is in breach of its duty to try and obtain the best possible price on a mortgagee sale;
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4535767 (v)\tab }{\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
Insufficient number of advertisements were placed to achieve the highest possible price.\'94
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par The Plaintiff filed an affidavit in reply on 28th April 1999, sworn by Laisenia Takala.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
The affidavit denies all allegations of fraud and states that the tenders for the property closed on 29th May 1998, that the highest tender received was for $95,000, and that the 1st Defendant\rquote 
s offer letter for $107,000 was submitted on the 1st of October 1998, five months after the tender had closed.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
Laisenia Takala states at paragraph 16(i) that the tender had closed and a tender accepted when the 1st Defendant had submitted his tender.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
The Plaintiff was therefore legally bound to proceed with the sale.
\par 
\par On the issue of advertisements, the property had been advertised on five occasions in the Fiji Times over a period of one month before 29th May 1998.
\par 
\par A further affidavit in reply was sworn by the 1st Defendant on 27th July 1999.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
In this affidavit, he states that the Bank of Hawaii had approved finance for the property on 1st May 1998, and that a formal offer was made on his behalf on 1st July 1998 by Messrs. Parshotam and Company, in the sum of $105,000.}{
\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 He states that when the Plaintiff made an offer to Tariq Aktar Ali on 9th July for $95,000.00, he knew of the 1st Defendant\rquote 
s higher offer.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Other attempts to persuade Mr Takala and the Plaintiff Bank, to accept the offer of $105,000.00 were unsuccessful.
\par 
\par Laisenia Takala\rquote s final affidavit was filed on 6th September 1999.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
He confirms that the Plaintiff did receive a letter from the Bank of Hawaii on 1st May 1998, and a letter from the 1st Defendant on 7th May 1998, offering to discharge the mortgagor\rquote s debt.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 He said that the Bank assessed the tenders received, and made a counter offer on 10th June 1998.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 The letter of offer (annexure B to the affidavit of Laisenia Takala) states that the Bank had approved refinancing of the property subject}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 to the 1st Defendant\rquote s acceptance (as holder of Power of Attorney) to repay the residual debt of approximately $9,733 over 5 years.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Repayment was to be $226 per month and evidence of finance was to be provided within 7 days from the date of the letter.
\par 
\par The 1st Defendant was to accept the offer by signing and returning the original of the letter within 7 days.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 The Defendant did not respond.

\par 
\par The affidavit further states that the offer of $105,000 should have followed the normal tender process, and that it would have been improper for the Bank to accept tenders after the closing date.
\par 
\par Counsel for Plaintiff and Defendants, made written submissions.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
Mr T. Seeto for the Plaintiff submitted that Order 88 had been complied with, that the Bank had acted properly and honestly and that the mortgagee should not be restrained from exercising its powers of sale.
\par 
\par Ms. P. Narayan for the Def
endants submitted that the mortgagee had a duty to the mortgagor to take reasonable precautions to obtain the true market value of the mortgaged property at the time of sale, and that the Plaintiff had failed in this regard in this matter.
\par 
\par She conceded that the Defendants had not complied with the formalities for the tender, but said that the 1st Defendant\rquote s clear intentions should have been accepted by the Bank.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Furthermore, she submitted that the Defendant had offered $10,000 more than the highest tender which made the mortgagor liable in contract for the difference.}{
\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 The sale, she submits, was conducted in bad faith and the Order 88 application should therefore be refused.
\par 
\par It is clear from the material before me, that there is no dispute that the propert
y in question is subject to a mortgage, that the mortgagors are in default to the amount of $126,567.58, that the 1st Defendant (the brother of the 2nd mortgagor) and the 2nd Defendant are in possession of the property, and that the Plaintiff was entitled
 to advertise the property and call for tenders.
\par 
\par What is in dispute is whether the Plaintiff, in refusing to accept the 1st Defendant\rquote s offers of $105,000, and $107,000, acted in breach of its duty to the mortgagors.
\par 
\par In }{\b\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Warner v. Jacob}{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767  20 Ch. D220, Kay J said, at 224:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 \'93.... a mortgage is strictly speaking not a trustee of the power of sale.}{
\b\i\lang2057\langfe1033\langnp2057\insrsid4535767  }{\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 It is a power given to him for his own benefit to enable him the better to realise his debt.}{
\b\i\lang2057\langfe1033\langnp2057\insrsid4535767  }{\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 If he exercises it bona fide for that purpose, without corruption or collu
sion with the purchase the Court will not interfere even though the sale be very disadvantageous, unless indeed the price is so low as in itself to be evidence of fraud.\'94
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4535767 
\par }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 For the purpose of this action, the Plaintiff appears to accept that the 1st Defendant is in the position of the mortgagor, on the basis of a power of attorney granted to him.
\par }{\lang2057\langfe1033\langnp2057\insrsid4535767 
\par }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 The 1st Defendant therefore submits that the Plaintiff owed a duty to him (and therefore to the mortgagors) to obtain a proper price on sale of the property.
\par }{\lang2057\langfe1033\langnp2057\insrsid4535767 
\par }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 The English Court of Appeal in }{\b\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Cuckmere Brick Co. Ltd. v. Mutual Finance Ltd.}{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767  (1971) Ch. 949 held that in exercising a power of sale, a mortgagee should take reasonable care to obtain the true market value of the mortgaged property.}{
\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 In New Zealand however, the Privy Council in }{\b\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
Downsview Nominees v. First City Corp}{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
 (1993) 2 WLR 86 declined to apply the tortious duty of care test to the equity of redemption of mortgages, preferring to ask whether the mortgagee had acted in good faith.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Similarly in }{\b\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Parker-Tweedle v. Dunbar Bank}{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
 (1990) 3 WLR 767 the English Court of Appeal preferred the test of good faith.
\par }{\lang2057\langfe1033\langnp2057\insrsid4535767 
\par }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 In that case, Nourse LJ said:
\par }{\lang2057\langfe1033\langnp2057\insrsid4535767 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 \'93
It is both unnecessary and confusing for the duties owed by a mortgagee to the mortgagor and the surety, if there is one, to be expressed in terms of the tort of negligence.}{\b\i\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 The authorities which were considered in the careful judgments of this court in }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
Cuckmere Brick Co. Ltd. v. Mutual Finance Ltd.}{\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767  demonstrate that the duty owed by the mortgagee to the mortgagor was recognised by e
quity as arising out of the particular relationship between them....\'94
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par In }{\b\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Downsview Nominees}{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767  (supra) Lord Templeman said:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 \'93If a mortgagor exercises his power of sale in good faith for the purpo
se of protecting his security, he is not liable to the mortgagor even though he might have obtained a higher price, and even though the terms might be regarded as disadvantageous to the mortgagor.}{\b\i\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\b\i\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Cuckmere Brick Co. Ltd. v. Mutual Finance}{\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767  is Court of Appea
l authority for the proposition that, if the mortgagee decides to sell, he must take reasonable care to obtain a proper price but is no authority for any wider proposition.\'94
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par The Defendants in this case allege fraud.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 In doing so, they allege not only that 
the Plaintiff acted in bad faith, but also that the Plaintiff failed to take reasonable care to obtain the best price on sale.
\par 
\par What is the evidence of fraud?}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 The Defendants say that the Plaintiff knew of the Defendant\rquote s wish to buy the property before 
tenders closed on 29th May 1998.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
The Plaintiff does not dispute this but says that the Defendants were given an offer which they chose not to accept.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
On the evidence particularly of the final affidavit of Laisenia Takala, I find that any delay caused prior to the closing of tenders, was caused by the Defendants.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{
\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 I also find that the 1st Defendant had the opportunity to purchase the property, but failed to take steps to redeem the mortgage.
\par 
\par The Defendants also say that the Plaintiff should have accepted the Defendants\rquote  offer of $107,000 although the tender procedures had been closed.
\par 
\par It is clear that the Defendants\rquote  second offer, was made after an offer had been accepted by the Plaintiff through the tender process.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
This has the effect of extinguishing the equity of redemption. }{\b\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Halsbury}{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767  (Vol. 4 4th edition para 1132) states:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid4535767 {\b\i\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 \'93The unconditional acceptance of a tender gives rise to a contract.\'94
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par In the circumstances, despite the existence of conditions in the acceptance letter, the Plaintiff could not have rescinded that contract in order to accept the Defendants\rquote  offer of $107,000.
\par 
\par The Defendants also say that the Plaintiff failed to obtain a proper market price on the property.}{\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
However, I do not consider the difference of $10,000 in the amount tendered and the amount offered by the Defendants, to be so marked that it is in itself, evidence of fraud.
\par 
\par In all the circumstances I consider that the Plaintiff gave the Defendants a fair opportunity to redeem the mortgage, that the Defendants failed to take that opp
ortunity, that the Plaintiff then advertised the property on five occasions calling for tenders, accepted the highest tender, and refused on good grounds a further offer made by the Defendants well after the closing date for tenders.}{
\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 I find therefore that there is no evidence of fraud, collusion or bad faith on the part of the Plaintiff.}{
\lang2057\langfe1033\langnp2057\insrsid4535767  }{\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Nor can I find any breach of duty towards the 1st Defendant acting for the mortgagors.
\par 
\par I therefore find no merit in the Defendants\rquote  opposition to this application, and I order in terms of the Plaintiff\rquote s summons.
\par 
\par The Defendants must pay the Plaintiff\rquote s costs to be taxed if not agreed.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\b\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 Nazhat Shameem
\par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 JUDGE}{\b\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid4535767 {\lang2057\langfe1033\langnp2057\insrsid4612695\charrsid4535767 
\par At Suva
\par 24th January 2000
\par }}