Case Spotlight: Cassegrain v Cassegrain – What Happens When Title Is Tainted by Fraud?
26th May, 2025
Property law can be complex, especially when it intersects with fraud. The High Court decision in Cassegrain v Gerard Cassegrain & Co Pty Ltd highlights the limits of title protection under Australian law. For anyone buying or owning property, this case shows how fraud can impact registered title – even when you’re not the one who committed it.
Case Summary
In this matter, Claude Cassegrain used company funds to buy a dairy farm for himself. He then transferred the property into joint names with his wife, Felicity. While Claude’s conduct was clearly fraudulent, there was no evidence that Felicity knew about the fraud. However, questions arose about whether her registered interest could still be challenged. In property law, “interest” means the legal share someone has in a property — like a 50% ownership.
Initially, the NSW Court of Appeal found that Felicity’s ownership could be overturned – either because Claude was acting on her behalf or due to their joint tenancy. However, the High Court disagreed in part. It concluded that while Felicity wasn’t involved in the fraud, the interest she acquired through Claude wasn’t protected.
Legal Principles
Australian law protects registered owners of property under the concept of indefeasibility of title. This means that once you’re registered, your ownership is usually safe. However, there are exceptions – and fraud is the most important one.
The key takeaway from Cassegrain v Cassegrain is this: if a person gains property from someone who used fraud to become registered, part of their interest may be vulnerable –even if they didn’t commit the fraud themselves.
Moreover, the Court clarified that simply being a joint tenant doesn’t make one responsible for a co-owner’s misconduct. Nor can fraud be assumed just because two people are married or share a title. In Felicity’s case, the Court ruled that she could keep her own half but had to transfer the half that came via Claude’s fraud.
Practical Takeaways for Property Buyers
If you’re purchasing property with another person, make sure the funds used are clean and traceable. Also, ensure that the co-owner’s conduct is above board. Even without knowledge of wrongdoing, your title could still be challenged in court.
This case shows how someone can lose part of their ownership if it was transferred from a person who obtained it fraudulently — even if they weren’t involved in the fraud themselves.
Furthermore, purchasers should understand that courts will look beyond registration to the source of title. So, it’s essential to engage qualified legal professionals to handle due diligence and conveyancing. This ensures the history of the property (and the people involved) is properly vetted before your name goes on the title.
How we can help
At Bangalow Conveyancing, we specialise in property law and conveyancing. Our team helps you avoid hidden risks and ensures a clean, secure transfer of title. Whether you’re buying a home, investing in property, or facing a title dispute, we provide expert guidance at every step.
Don’t leave your property ownership to chance. Get in touch with us today to protect your investment and gain peace of mind.
If you’d like to read the official High Court summary of this case, you can find it here:
👉 Cassegrain v Gerard Cassegrain & Co Pty Ltd [2015] HCAS 2 – AustLII
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