Misleading and Deceptive Conduct

Sutherland v GHR Accounting [2015] NSWSC 1946

A corporate borrower defaulted on a loan secured over all his properties including his home, was de-registered and its guarantor sued the accountants for allegedly negligent advice as well as misleading and deceptive. The case against the bank was dismissed however the borrower was allowed to re-plead against his accountants to identify the scope of …

Sutherland v GHR Accounting [2015] NSWSC 1946 Read More »

LM Investment Management (in liq) v BMT [2015] NSWSC 1902

The lender in liquidation (previously the RE for the LM First Mortgage Income Fund) advanced $23m to a developer secured over the land purchased and sued its surveyors for an alleged negligent valuation of works and also sued for misleading and deceptive conduct. The surveyor raised various defences, namely that its conduct did not cause …

LM Investment Management (in liq) v BMT [2015] NSWSC 1902 Read More »

Watson Superannuation Fund v Scott [2015] QCA 267

Clients lent superannuation money, unsecured, to their accountant which was never repaid. The client demanded repayment from the accountant and the accountant argued that the agreement did not contain a stand alone operative guarantee clause that made the accountant named as guarantor liable for the debts. Unknown to the clients, before they signed the agreement, …

Watson Superannuation Fund v Scott [2015] QCA 267 Read More »

Frog Swamp v Statewide Secured Investments [2015] NSWCA 376

The lender obtained defaults judgment and the borrower sought to set them aside over 3 years later. The borrower argued at first instance and on appeal that: The lender was not the creditor because the benefit of the loans had been assigned to another entity and so the mortgages which remained registered in the name …

Frog Swamp v Statewide Secured Investments [2015] NSWCA 376 Read More »

CBA v Clapham; Byron Bay Holdings v CBA [2015] NSWSC 1714

The bank financed the purchase of Macadamia farms secured over the farms, a beach property and personal guarantees by the husband and wife. The borrower was the trustee of a family trust. The borrower defaulted and receivers were appointed to the trust properties and sold. The beneficiaries of the trust were the husband and wife. …

CBA v Clapham; Byron Bay Holdings v CBA [2015] NSWSC 1714 Read More »

Pioneer Mortgage Services v Columbus Capital [2015] FCA 1067

A securitisation funder bought a loan book associated with mortgages originally funded by a bank and became subject to the bank’s obligations in its origination deeds. The originator’s employee stole money from borrowers by carrying out fraudulent redraws, which went undetected for 7 years because the originator had no system in place to cross-check redraws …

Pioneer Mortgage Services v Columbus Capital [2015] FCA 1067 Read More »

AKS Investments v Gazal [2015] QSC 247

The court at first instance held that the bank and its employee had not made representations that induced the borrower to act on the basis that it had a $20 million credit facility available to it. The borrower appealed and the appeal was dismissed by consent. The borrower then applied to have judgment set aside on …

AKS Investments v Gazal [2015] QSC 247 Read More »

Smart v AAI [2015] NSWSC 392

A mortgage broker misappropriated his client’s funds which they had agreed to on-lend but never did and was found liable for breach of contract and false and misleading conduct. The court’s finding that the broker was liable in contract meant that the client’s loss was not at risk of being reduced by any proportionate liability …

Smart v AAI [2015] NSWSC 392 Read More »

Westpac v ZH International [2015] NSWSC 607

A developer borrowed money from the bank to develop some apartments and granted the bank a first mortgage. Towards the end the developer sold the builder one of the units at a large discount in lieu of payment. The sale price of the remaining units failed to discharge the debt to the bank and the …

Westpac v ZH International [2015] NSWSC 607 Read More »

Traderight (NSW) v Bank of Queensland [2015] NSWCA 94

In 2003, Bank of Queensland Ltd (“BOQ”) embarked upon a program of interstate expansion. Between August 2004 and April 2007, BOQ appointed a number of franchisees in New South Wales and enabled them to undertake banking operations as its agents through “owner managed branches” (or “OMBs”). Some of the OMBs were unsuccessful and their proprietors …

Traderight (NSW) v Bank of Queensland [2015] NSWCA 94 Read More »

Scroll to Top