A husband and wife guaranteed the debts of their company to a supplier and the supplier sued on the guarantees. The court found in favour of the supplier and the husband and wife appealed. One basis of their appeal was that the wife should be released from the guarantee as it was unjust under the …
Canty v PaperlinX [2014] NSWCA 309 (5 September 2014) Read More »
A husband and wife ran a successful African restaurant and purchased another property to open a further restaurant. This purchase was funded by the bank as a commercial loan and the husband and wife gave guarantees. The guarantees were secured on the family home as well as the property purchased. The couple ran into financial …
Westpac Banking Corporation v Diagne [2014] NSWSC 822 Read More »
The bank sought summary judgment against a husband and wife, who both guaranteed their company’s borrowings. The court gave summary judgment against the husband but not the wife. The court said: The fundamental weakness of her Wife’s Equity defence rests in her being a shareholder with her husband in the borrower company. But I consider …
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 …
The wife guaranteed a loan used by the husband to buy shares. The loans went into default and the bank sought possession. The wife argued that they should be set aside on the basis of the wife’s equity principle. In relation to the guarantee, the bank was told by the husband that the wife had …
This case arose out of margin loans taken out by the owner of ABC Learning Centres, just before its spectacular collapse and his and his wife’s shares sold to satisfy various margin calls. The wife’s shares were sold pursuant to guarantees which secured the husband’s margin loans. The wife’s case was that she did not …
This case concerns the reversal of fortunes of the director/shareholder of the failed Gold Coast fund Equititrust. His mother gave a mortgage and guarantees to the bank in relation to the indebtedness of her son’s fund. The son’s fund failed to meet demands for payment of $12m and the bank sued the mother for possession. …
McIvor v Westpac Banking Corporation [2012] QSC 404 Read More »
A wife mortgaged her home to secure a $50,000 loan to fund her husband’s litigation thinking her liability was limited to $50,000 where in fact, the lender changed the loan documentation to secure the husband’s entire indebtedness of $500,000 and made her a guarantor. The wife applied to have the mortgage and guarantee set aside …
A defacto wife was encouraged by her defacto husband to grant mortgages over her two properties to secure loans to be used in a project managed by her defacto husband. The wife claimed relief under the Contracts Review Act and equitable relief for unconscionable conduct. The court rejected any duty on the part of the …
The guarantor wife was a director and shareholder of the borrower company. Nevertheless, the guarantee was set aside under the “Wife’s equity principle.” It is unconscionable to enforce a guarantee against a wife who does not understand its effect and receives no benefit from the transaction if the lender took no steps to explain the …
Bank of Western Australia Ltd v Abdul [2012] VSC 222 Read More »
