Plum v Commonwealth Bank of Australia [2005] FCA 790

FEDERAL COURT OF AUSTRALIA

Plum v Commonwealth Bank of Australia [2005] FCA 790

TRADE PRACTICES – Fair trading – Negligence – Alleged misleading conduct – Loans by a bank to enable borrower to purchase properties for residential unit development – Bank subsequently refused an application for development finance – Development finance not able to be obtained and properties sold at a loss –Whether bank officer was negligent in relation to giving information or advice – Whether bank officer misled borrower concerning availability of development finance – Whether bank engaged in deceptive or misleading conduct. Trade Practices Act 1974 (Cth) ss 51A, 52 Fair Trading Act 1987 (NSW) ss 41, 42 Australian Securities and Investment Commission Act 2001 (Cth) ss 12BB, 12DA PETER WILLIAM PLUM v COMMONWEALTH BANK OF AUSTRALIA and MICHAEL QUIRK NSD 983 of 2003 COMMONWEALTH BANK OF AUSTRALIA v PETER WILLIAM PLUM NSD 1714 of 2003 WILCOX J 15 JUNE 2005 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NSD 983 of 2003

BETWEEN: PETER WILLIAM PLUM

APPLICANT

AND: COMMONWEALTH BANK OF AUSTRALIA

FIRST RESPONDENT

MICHAEL QUIRK

SECOND RESPONDENT

NSD 1714 of 2003

BETWEEN: COMMONWEALTH BANK OF AUSTRALIA

APPLICANT

AND: PETER WILLIAM PLUM

RESPONDENT

JUDGE: WILCOX J

DATE: 15 JUNE 2005

PLACE: SYDNEY

THE COURT ORDERS THAT: 1. It be declared that: (a) the State Bank of New South Wales, trading as 'Colonial State Bank', engaged in misleading or deceptive conduct in relation to the applicant, Peter William Plum, on 28 February 1997, in contravention of s 52 of the Trade Practices Act 1974 (Cth) and s 42 of the Fair Trading Act 1987 (NSW); and (b) the second respondent, Michael Quirk, was involved in the said contravention, within the meaning of s 75B of the Trade Practices Act and s 61 of the Fair Trading Act. 2. All issues of damages, other relief and costs be reserved for consideration at a further hearing on a date to be appointed. 3. The matter be listed for further directions at 9.30am on Thursday, 28 July 2005. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.