04 June 2013

The loan funds were deposited into the account of the wrong company, which spent them. The borrower had brought a claim against the bank, the broker and the company that got the money.

Default judgment was obtained against the company. The company then filed an application to set aside the default judgment.

The judge commented that generally applications to set aside default judgment should seldom, if ever, be refused on the basis of a weak case. However in this case the judge decided that the oral evidence the director had given in court proved that he was not in a position to assert any monies were owed to the company at all - therefore there was no defence to the claim.

Click here to read the full judgment

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.

Read more about Kate Cooper