Bank of Queensland v Banjanin [2014] QSC 131

The bank sued the guarantors for repayment of a $2m debt owed by their company. The guarantors counterclaimed for damages for having been lured into the borrowings by the bank in circumstances that were unjust because there was insufficient equity in the property and inadequate servicing capacity on their part to support the borrowings. The guarantors alleged that the bank made misleading representations about the loan and the value of the property and sought to have the company joined.

The court permitted joinder, on the basis that the company may have claims of its own, separate from the guarantors and the guarantors may wish to argue that the company’s losses are part of the suite of damages they seek.  

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