This case concerned 2 companies, both having a common director and shareholder. One company was owned by a couple and the other by the male partner only. The company owned by the couple (first company) borrowed from the bank on a commercial loan secured by a first registered mortgage and a guarantee given by the …
Jetobee (in liquidation) v Smith & Young [2015] NSWSC 1526 Read More »
A mortgagee insisted on payment of additional amount beyond what was owing on the mortgage to secure future costs of litigation before giving a discharge. The borrower sought a mandatory injunction compelling the bank to discharge the securities. The history of the dispute had its origin in the borrower disputing the bank’s entitlement to fees …
There were two neighbours who were good friends. One would often borrow money from the other for business purposes. The loans were never documented. On this occasion, the borrower requested $500K to start a frozen custard franchising business. It was done on a hand shake between the borrower and his son and the lender. 10 …
The bank initially sued for possession of the guarantors’ property. The guarantors argued that their liability was limited to less than that claimed and that their guarantee and mortgage was void because the bank had breached its obligation to act in good faith. They also argued that the receivers appointed by the bank had breached …
The trial judge set aside the loan as unjust and as a result had dismissed the cross-claim by the borrowers against the fraudster, as the borrowers were not required to pay anything to the lenders. On appeal, the Court found that the borrowers must give credit to the lender because $1M was used to discharge …
The borrower purported to discharge the mortgage by tendering a promissory note. The lender refused the tender and sold the security. The borrower sued alleging the lender should have accepted the promissory note and failed to obtain “the best price reasonably obtainable” when selling the property. Promissory note The court rejected the promissory note argument, …
Van der Kooij v Mystate Financial [2014] FCA 350 Read More »
This was an absurd case where the mortgagor attempted to argue that his tender of a promissory note to the mortgagee in terms of a promise to pay $285,000 discharged his mortgage. The court noted that the promise in a promissory note is no different from the promise contained in the mortgage to repay the …
The founder of the Serbian club agreed to settle his action against the club by a discharge of mortgages in his favour over the club’s land. He failed to sign discharges and the club sought relief. The founder did not file any proper defence. The court had no confidence that the founder would comply with …
Serbian Cultural Club v Radovanov [2012] ACTSC 60 Read More »
The lender advanced various amounts of money to the borrower. However two of the advances alleged to have been loaned were disputed. The borrower brought the error to the solicitor’s attention and believed it would be fixed. However in the meantime, he signed a variation of the mortgage which still included the disputed loan amounts. …
The trustee of property of a deceased sought a determination under section 98(1) of the Conveyancing Act 1919 that all amounts due under an old mortgage had been paid and a certificate be granted to that effect and an order that the trustee be authorised to sell the land by private contract. The will provides …
The Trust Company as trustee of the Estate of William Redman [2011] NSWSC 755 Read More »
