Wife’s Equity Principle

Woodman v Kudosa Pty Ltd [2015] VSC 675

A husband, pilot and property developer was made bankrupt and used his wife as a “dummy front’ for his business. His wife became the director and shareholder of his company, signed various documents without reading them and purchased two investment properties, at her husband’s insistence. The wife owned a previous home, in her own name, …

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Schultz v Bank of Queensland [2015] QCA 208

A husband inherited land and the wife funded the building of their family home by selling her a property purchased in her name only. The husband and wife were registered as co-owners of the beach property and later it was put in her name only as an asset protection strategy. The wife gave two guarantees …

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Amtel v Ah Chee [2015] WASC 341

A husband and wife’s company obtained goods on credit and the wife provided a guarantee for the amounts owed. The supplier sued on the guarantee and the wife raised a defence of unconscionability. The court did not believe the wife and found that she signed the guarantee, was an astute business woman who made decisions …

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Secure Funding v Egan [2015] NSWSC 340

The lender claimed possession and the ex-wife claimed the mortgage was unjust because she simply relied on her ex-husband, left all financial decisions to him and did not read the documents. She further claimed that the lender was unconscionable in not investigating that she was in fact divorced and receiving a disability pension. The court …

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HSBC v Mavaddat [2015] WASC 153

The mortgage over the family home secured the home loan and a business loan. The wife raised the wife’s equity defence. She was found to have no possibility of success in relation to the home loan (but did have an arguable defence in relation to the business loan). The bank then argued possession should be given so that …

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Schultz v Bank of Queensland [2015] QCA 19

We previously reported on this case. A wife sought to set aside her mortgage under the wife’s equity principle and unconscionability. The wife did not give evidence and instead her barrister asked the trial judge to infer that she misunderstood: Her liability for interest and costs; The loan amount; and The fact that she might be made …

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ANZ v Ghahreman [2015] NSWSC 113

Husband and wife borrowers made no payments at all under their loan but continued to receive rental income from the commercial premises which secured the loan. Possession proceedings were on foot and in the meantime the lender sought to restrain the borrowers from receiving rental income and to have it paid into a blocked account …

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Westpac v Kekatos [2014] NSWSC 1802

The bank lent money to a husband and wife on the security of their Vaucluse family home to finance the husband’s development project. The bank applied for summary judgment against the husband and the wife. Against the husband, the bank got judgement for $19.3 million. However, the bank failed to get summary judgment against the …

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Schultz v Bank of Queensland Ltd [2014] QSC 305

A wife gave a mortgage and guarantees to secure three different loans by her husband and their family trust, controlled by her husband. The bank sued and the wife argued the wife’s equity principle and alternatively claimed unconscionability (in equity and under section 12CA of the ASIC Act 2001). The court noted that in order …

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