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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Kate resize

Kate Cooper joined Bransgroves Lawyers in 2006 and has been a partner since 2009. Kate specialises in Supreme Court litigation in the fields of mortgage enforcement, professional negligence and originator/funder disputes. She has an extensive transactional practice including, origination deeds, aggregation deeds, commercial and construction lending and mortgage securitisation.

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