(1) If—
(a) a
person (the "defendant") lodges a priority notice in the Lands Titles
Registration Office; and
(b)
another person (the "plaintiff") suffers loss or damage as a consequence of
the notice having been lodged; and
(c) the
defendant—
(i)
was not entitled to lodge the notice; or
(ii)
unreasonably refused or failed to withdraw the notice,
the defendant is liable to compensate the plaintiff for the loss or damage.
(2) The Court may, in
proceedings under this section, require the defendant to pay an amount,
determined by the Court, in the nature of exemplary damages.
(3) The defendant in
proceedings under this section bears the onus of proving that he or she was
entitled to lodge the priority notice or that he or she did not unreasonably
refuse or fail to withdraw the notice.