26 June 2014

The borrowers defaulted on three farm loans and the bank claimed possession. The borrowers admitted the bank's claim but argued the bank was estopped from seeking possession because of representations made by the bank at mediation that they would refinance the loans if an amount owing could be agreed upon.

The court found no defence to the claim and no basis for estoppel because the representations were conditional on the parties agreeing what amount was owing. The court also found that the bank had the benefit of a certificate that the Farm Debt Mediation Act did not apply to the mortgages because the mediation had failed.

The defences were struck out.

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Matthew Bransgrove, Partner

Matthew Bransgrove has practised exclusively in the field of mortgage law and mortgage related litigation since 1998. He is author of Avoiding Mortgage Fraud in Australia (2015) Lexis Nexis. He is co-author of The Essential Guide to Mortgage Law in NSW (2008) Lexis Nexis and its successor The Essential Guide to Mortgage Law in Australia (2013) Lexis Nexis.

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