NAB v Grose [2006] NSWSC 979

In this case NAB was suing Grose on his guarantee. Grose claimed NAB only needed to call on the guarantee because it had negligently exercised its power of sale over the primary security being a shopping centre in Queensland. Naturally the extent of the losses thus claimed were enough to cancel out the amount claimed under the guarantee.

Grose wanted to call witnesses including the tenants, valuers, real estate agents and property developers in around where the centre was in Queensland. He maintained that as they were all in Queensland the case should be moved to the Supreme Court of Queensland.

NAB pointed to clause in the mortgage which required Grose to submit to the jurisdiction of the courts of NSW. The court held however that “the jurisdiction of the court to manage its business cannot be determined by agreement of the parties.” Nevertheless the clause would be applied unless “other relevant factors are powerfully in favour of another jurisdiction”.

In the end Justice Adams decided the interests of justice required the transfer to Queensland.

Click here to read the full judgment

Scroll to Top