humm Group (ASX:HUM) has been ordered by the Australian Federal Court to pay AU$19 million in damages to SMBC Leasing, according to a Tuesday Australian bourse filing.

The case relates to financing arrangements entered into by SMBC with Flexirent Capital. a unit of humm, and later Forum Enviro related to Veolia Environmental Services. The unit was not aware that signatures representing Veolia were forged by Bill Papas, the founder of the Forum Group of companies.

The court also concluded that Flexirent was not aware that SMBC Leasing was planning to enter into an arrangement directly with Forum Enviro.

The court found Flexirent Capital and humm liable for breach of warranty in a 2018 deal because it had guaranteed Flexirent's obligations, but ruled in favour of humm and Flexirent in respect of a separate 2020 arrangement.

The company said it is assessing the overall financial impact from the judgment, which it said will depend on the final orders made by the court.

humm said it had already set aside provisions of AU$12 million for this matter, along with a AU$3 million separate provision for regulatory matters, which it is considering to release as part of this award.

The parties have been directed to confer and attempt to reach an agreement on final orders by Feb. 13, including as to costs, and if an agreement is not reached on any issue, the proceedings will be listed for argument on Feb. 20.