NAB v Jellyman [2012] NSWSC 847

The bank lent monies to a company operating a vineyard and when the company defaulted, the bank sued the guarantor for $10 million. The guarantor initially pleaded that the bank had misrepresented to him the value of the property, to induce the company and him to execute the loan and guarantee, but abandoned this at trial and instead argued that the bank improperly used the valuation to give him comfort by way of inducement. An essential part of the defence was that the bank had commissioned the valuation and this was denied by the bank.

The court found that the borrower commissioned the valuation not the bank and so the defence failed.

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