A lender sought possession and the borrower challenged this on the basis that no monies were owing because the lender had agreed orally that the borrower was not obliged to repay any loans until the loans were refinanced and that no matter how long it took to refinance, no interest would be payable at all. …
The parents of a developer gave a mortgage and guarantees (limited to $2m) over their home to enable their son to refinance a $25m residential home unit development which the father was helping construct and the lender sought to enforce the parent’s mortgage and guarantee. The lender said to the solicitor acting for the development …
A business owned multiple hotels and night clubs and the loans were secured by a guarantee from the owner of the business, who had also personally taken out home loans secured against his home. The EBIT (earnings before interest and tax) covenant in the business loans were breached, the bank charged penalty interest of 5%, …
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 …
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 …
A borrower on a disability pension was conned by a loan originator to borrow against his home to make an investment that would pay off his remaining mortgage of $15,000 and give him a good return. The originator included false documents in the loan application for $240,000, including a false valuation. The investment was made, …
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 …
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 …
A mother took out a loan to benefit her son and daughter-in-law’s father. The loan went into default and the lender sought possession. Possession proceedings were then settled on terms which gave the lender the benefit of a judgment for possession if the sum agreed to discharge the mortgage was not paid by a certain …
A husband and wife borrowed money to finance the purchase of a supermarket. They argued that the bank in lending them money engaged in unconscionable conduct. In particular: They were inexperienced in retailing, to the knowledge of Westpac. They were in a losing business from the time that they entered into the purchase agreement but …
