We have previously reported on the trial judge’s decision in this case. The trial judge found the borrowers were the victims of a fraudster but as the lender was found to have engaged in pure asset lending the judge set aside the mortgage in its entirety. The lender found this grievously unjust as a large …
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 »
The borrowers raised an unjustness defence. In response the lender sought to amend his claim to add a claim for subrogation to the rights of the prior mortgagee and an alternative claim as an equitable mortgagee by reason of the payout of the previous mortgage. The court permitted the additional claims for the following reasons: …
A wife applied the bulk of the $4m inheritance she received from her parents to buy the family home which she then mortgaged to invest in real estate. The investments were conducted by her husband. Eventually the investments went bad and the bank sought possession of the family home. The wife raised a Contracts Review …
A husband and wife purchased a property from friends using vendor finance, which required repayment of all outstanding principal after 2 years and was secured by a mortgage. The court found that the vendors knew that the property was not worth the contract price, even though they may not have known its precise worth and …
An account holder acting under duress from a bikie gang withdrew money from his bank account, which caused his account to be overdrawn. The bank sued for the money owing and obtained default judgment. Three years later, the account holder sought to have it set aside, on the basis of fraud and duress and alternatively …
Upon default, they claimed the mortgage was unjust for the purposes of the National Credit Code and the Contracts Review Act because the bank loaned when they had an inadequate exit strategy if they retired or took ill. For an exit strategy the husband had nominated the sale of the business premises. These he said …
Bendigo and Adelaide Bank Ltd v Karamihos [2014] NSWCA 17 Read More »
The bank lent to a group of companies and the directors’ family members (wives, sister and mother) provided guarantees and mortgaged their homes. The guarantors were advised to seek independent legal advice by their lawyer (who also acted for the group) and refused, signing acknowledgements waiving their rights to such advice. The group then went …
A doctor was defrauded of $1.65m by a mortgage broker, who convinced the doctor to mortgage his properties and re-invest those monies to earn a higher rate of interest. Instead of investing his client’s monies, the mortgage broker misappropriated the money. The lender sued for possession of the properties. The doctor sued the lender on …
Landa v Perpetual Trustees Victoria [2013] NSWSC 1685 Read More »
The bank sought judgment for possession and the amount outstanding under its loan. The loan monies were secured by a mortgage and refinanced a previous loan. The borrower claimed the loan and mortgage were unjust and unconscionable under the Contracts Review Act and the general law. The bank claimed it was subrogated to the rights …
