A bank wrongly approved a loan to a borrower to purchase the management rights of a development, owing to a mistake made by the bank. The bank failed to identify that the borrower’s cash flow would be unable to service the loan by a significant margin. The borrower complained to the bank and accepted a …
A borrower was lent money on the security of a mortgage and “all moneys” guarantees. The loan was refinanced but the guarantees continued for any future lending. The lender’s rights under the guarantees were transferred to BOQ and before BOQ lent money to the borrower to refinance its existing facilities, the borrower and BOQ entered …
This case involved a businessman’s dream home that went pear-shaped due to cost overruns. When the bank sought possession the borrower sought to blame the bank. Improvidence / Non-English speaking The borrower argued the bank should never have made the loan as it was improvident and they were vulnerable people: There was no reason for …
A real estate manager with no substantial assets had a friend who was rather wealthy, having made his fortune manufacturing bike helmets. The real estate man convinced the bike helmet man to go into business with him to acquire investment properties on the Gold Coast. They agreed to fund and own the properties on a …
The bank sought possession. The wife initially sought to argue unjustness under the Contracts Review Act and unconscionability. These claims were abandoned and the bank was granted possession. The bank then sought monetary judgement so it could pursue the borrowers for any shortfall. In response, the wife then sought to reinstate her previous defences and …
A naive, simplistic salesman was talked into buying a two year old business where he worked as a salesman for $2 million. He had no inkling of the businesses financials but the bank did and encouraged him. The bank also fell victim to questionable documents emanating from a broker’s office. The parents of the borrower …
The guarantors heavily invested in a unit complex on the Gold Coast financed by the bank, renting them out as holiday units through their company. They owned a number of other investments on the Gold Coast and their home in Victoria, financed by BOQ. The manager of the complex decided to sell them the management …
The bank sought possession and a monetary judgment for $31m. The borrower admitted the debt but claimed that the bank represented to him that it would ‘lend to him forever’ and that his financial problems were as a result of the bank withholding development funds it had promised. The court was not satisfied that the …
Neale v Bank of Western Australia [2014] NSWSC 315 Read More »
A husband and wife guaranteed company loans, secured by an earlier all monies mortgage over their home. The bank sought possession and a money judgment against the wife. The wife cross-claimed that the two guarantees she signed were void because had she known that the mortgage was an “all monies” mortgage and had the bank …
At the end of a three day hearing of the matter, the borrower asked for permission to change her claim against the bank to add two claims – firstly that the bank had contravened provisions of the Code of Banking Practice and secondly that the bank had engaged in misleading and deceptive conduct under the …
