A notary has been ordered to pay more than €186,000 in damages after a court found she had been grossly negligent when she counter-signed a power of attorney which had not been signed in her presence.

Joseph Mamo told the court that in 2004 he had loaned Emanuel Gatt €186,349.87 by means of a notarial deed. The loan was secured by a special hypothec on a property in Birkirkara.  On the deed, Mr Gatt was represented by Christopher Gatt in virtue of a power of attorney signed in the presence of Notary Rachelle Farrugia Buhagiar.

However, when Mr Mamo requested repayment of the loan from Emanuel Gatt, the latter told him he had not signed the power of attorney in favour of Christopher Gatt.

When Mr Mamo tried to force the judicial sale by auction of the Birkirkara property by means of a court case, that court ruled that the signature on the power of attorney was not that of Emanuel Gatt.  The court had ruled that the notary's counter-signature was void and annulled the deed of loan.

Mr Mamo said that he had suffered damages as a result of the notary having witnessed a signature when the signature was not affected in her presence and he requested the court to award him €186,349.87 in damages from notary Farrugia Buhagiar.

In his judgment, Mr Justice Silvio Meli said that Mr Mamo had loaned the money to Christopher Gatt on the basis of a power of attorney allegedly signed by Emanuel Gatt in the presence of a notary, but this had not been the case and the loan had been declared null and void by another court.

A power of attorney, said the court, was a serious and important public document in terms of which a third party could act on behalf of his principal. The notary was obliged to ensure that the signatures on the power of attorney were affected in her presence.  In this case, the notary had admitted before the court that she had counter-signed the power of attorney before it had been signed by Emanuel Gatt.

Mr Justice Meli said that notary Farrugia Buhagiar had not acted fraudulently, but that her actions were the result of over familiarity with the Gatt family.

It found that the notary had acted in a grossly negligent manner and ordered her to pay damages of €186,349.87 to Mr Mamo.