Contracting out of proportionate liability upheld - Perpetual Trustee V CTC

The Court concluded that the proportionate liability provisions did not apply and CTC was not entitled to reduce its liability to Perpetual

The New South Wales (NSW) Court of Appeal has recently delivered a judgment demonstrating what amounts to 'contracting out' of the NSW proportionate liability legislation.

In Perpetual Trustee Company Ltd v CTC Group Pty Ltd [2013] NSWCA 58, it was found that an indemnity clause in a Mortgage Origination Deed (MOD) made express provision for the rights and liabilities of Perpetual and CTC and thus amounted to contracting out of proportionate liability within the meaning of section 3A(2) of the Civil Liability Act 2002 (CLA).

Read more here.