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The Queensland government has lodged an appeal against a monetary order made earlier this year, refusing to pay a Gold Coast couple who discovered their house did not legally belong to them, even after residing there for five years.
In February, the Queensland Supreme Court ruled that Jess and Jackie Morecroft's Mermaid Beach home still belonged to the previous owner, Hind Issa, and was never transferred into their names despite being sold and paid for.
The couple had hoped for compensation, but the state government is challenging the decision, arguing that the judge erred in granting the $2.7 million compensation.
The state government's appeal contends that Justice Lincoln Crowley made a legal error by determining that the Morecrofts had an "equitable interest" in the property.
The appeal document states, "If anything, the respondents only acquired an equitable right to seek specific performance of the contract."
The government's lawyers argue that the couple was not "deprived of an interest in a lot" due to the fraud committed by Issa's relative, which would have justified compensation.
Instead, they claim that the couple's loss of interest was a result of the conduct of the mortgagees who sold the property and the failure to conduct a title search before entering into the purchase contract.
The Morecrofts expressed their dismay and concern regarding the government's decision to appeal, with Mrs. Morecroft describing the initial wave of fear and uncertainty upon hearing the news.
Mr. Morecroft criticized the government's approach, stating, "They're behaving like a bad insurance company [saying]: 'Deny, deny, deny'. We do not understand why. It's unjust and it's cruel, and they're going to destroy our family, and I'm not really sure why they're doing it."
The couple is urging the government to withdraw their appeal and expressed their financial concerns, as they are uncertain how they will meet the costs order that has been imposed on them.
Gold Coast MP Ray Stevens has called upon Premier Annastacia Palaszczuk to intervene, emphasizing the potential financial ruin faced by the Morecrofts due to the ongoing litigation.
Stevens questioned whether the government would persist in taking the matter all the way to the High Court, highlighting the challenging situation faced by the family.
The Queensland government's appeal against the compensation order has been lodged, and a hearing date will be determined in due course.
A Department of Resources spokesperson has confirmed the appeal but declined to provide further comment, citing the ongoing court proceedings.
