Paciocco v Australia and New Zealand Banking Group Limited [2014] FCA 35

FEDERAL COURT OF AUSTRALIA

Paciocco v Australia and New Zealand Banking Group Limited [2014] FCA 35 Citation: Paciocco v Australia and New Zealand Banking Group Limited [2014] FCA 35

Parties: LUCIO ROBERT PACIOCCO and SPEEDY DEVELOPMENT GROUP PTY LTD (ACN 006 835 383) v AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED (ACN 005 357 522)

File number: VID 196 of 2013

Judge: GORDON J

Date of judgment: 5 February 2014

Catchwords: BANKING AND FINANCIAL INSTITUTIONS – law of penalties – penalties at law – penalties in equity – genuine pre-estimate of damage – breach of contract – collateral or accessory stipulation – security for, and in terrorem of, satisfaction of primary stipulation – further accommodation – alternative mode of performance – inherent circumstances – extravagant and unconscionable – loss and damage – late payment fee – honour fee – dishonour fee – overlimit fee – non-payment fee – card accounts – saving accounts – business accounts – unconscionable conduct – unjust transactions – unfair contract terms – limitation defences

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) Competition and Consumer Act 2010 (Cth) Federal Court of Australia Act 1976 (Cth) National Consumer Credit Protection Act 2009 (Cth) Trade Practices Amendment (Australian Consumer Law) Act (No 1) 2010 (Cth) Australian Consumer Law and Fair Trading Act 2012 (Vic) Fair Trading Act 1999 (Vic) Fair Trading (Amendment) Act 2003 (Vic) Fair Trading Amendment (Australian Consumer Law) Act 2010 (Vic) Fair Trading Amendment (Unfair Contract Terms) Act 2010 (Vic) Fair Trading and Other Acts Amendment Act 2009 (Vic) Limitation of Actions Act 1958 (Vic) Cases cited: Acron Pacific Ltd v Offshore Oil NL (1985) 157 CLR 514 Air Express v Ansett Transport Industries (Operations) Pty Ltd (1979) 146 CLR 249 AMEV-UDC Finance Limited v Austin (1986) 162 CLR 170 Andrews v Australia and New Zealand Banking Group Ltd (2012) 247 CLR 205 Andrews v Australia and New Zealand Banking Group Ltd (2011) 211 FCR 53 Ange v First East Auction Holdings Pty Ltd (2011) 284 ALR 638 Australian Competition and Consumer Commission v 4WD Systems Pty Ltd (2003) 200 ALR 491 Australian Competition and Consumer Commission v Allphones Retail Pty Ltd (No 2) (2009) 253 ALR 324 Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd (2003) 214 CLR 51 Australian Competition and Consumer Commission v Lux Distributors Pty Ltd [2013] ATPR 42-447 Australian Competition and Consumer Commission v Simply No-Knead Franchising Pty Ltd (2000) 104 FCR 253 Australian Securities and Investments Commission v National Exchange Pty Ltd (2005) 148 FCR 132 Baltic Shipping Company v Dillon ("Mikhail Lermontov") (1991) 22 NSWLR 1 Baltic Shipping Company v Dillon (1993) 176 CLR 344 BMP Global Distribution Inc v Bank of Nova Scotia [2009] 1 SCR 504 Citicorp Australia Ltd v O'Brien (1996) 40 NSWLR 398 Clydebank Engineering and Shipbuilding Company v Don Jose Ramos Yzquierdo Y Castaneda [1905] AC 6 Commissioner of Taxation v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 Commonwealth Trading Bank of Australia v Sydney Wide Stores Proprietary Limited (1981) 148 CLR 304 Concut Pty Ltd v Worrell (2000) 75 ALJR 312 Custom Credit Corporation Ltd v Lupi [1992] 1 VR 99 David Securities Pty Ltd v Commonwealth Bank of Australia (1992) 175 CLR 353 Devaynes v Noble (1816) 1 Mer 529 (Clayton's case) Director of Consumer Affairs Victoria v Scully (2013) 303 ALR 168 Dunlop Pneumatic Tyre Company Limited v New Garage and Motor Company Limited [1915] AC 79 Elberg v Fraval [2012] VSC 342 English Hop Growers v Dering [1928] 2 KB 174 Farmer v Arundel (1772) 96 ER 485 Fink v Fink (1946) 74 CLR 127 Fletcher Construction Australia Ltd v Varnsdorf Pty Ltd [1998] 3 VR 812 French v Macale (1842) 2 Drury and Warren 269 Godfrey v National Australia Bank (2001) NSWSC 977 Hardy v Martin (1783) 1 Cox Eq Cas 26 Hurley v McDonald's Australia Ltd (2000) ATPR 41-741 Interstar Wholesale Finance Pty Ltd v Integral Home Loans Pty Ltd (2008) 257 ALR 292 Jetstar Airways Pty Ltd v Free [2008] VSC 539 Johnes v Johnes (1814) 3 ER 969 Kedem v Johnson Lawyers Legal Practice Pty Ltd [2013] FCA 432 Kleinwort Benson Ltd v Lincoln City Council [1999] 2 AC 349 Knezevic v Perpetual Trustees Victoria Ltd [2013] NSWCA 199 Knowles v Victorian Mortgage Investments Ltd [2011] VSC 611 La Trobe Capital & Mortgage Corporation Ltd v Hay Property Consultants Pty Ltd (2011) 190 FCR 299 Leduva Pty Ltd v NM Structural Engineering Pty Ltd [2010] NSWSC 1164 Limpgrange Ltd v Bank of Credit and Commerce International SA [1986] FLR 36 Lordsvale Finance Plc v Bank of Zambia [1996] QB 752 Mackenzie v Albany Finance Ltd [2003] WASC 100 May v Brahmbhatt [2013] NSWCA 309 Mayne Nickless Ltd v Multigroup Distribution Services Pty Ltd (2001) 114 FCR 108 McRae v Commonwealth Disposals Commission (1951) 84 CLR 377 Merck Sharp & Dohme (Australia) Pty Ltd v Peterson [2009] FCAFC 26 Metro-Goldwyn-Mayer Pty Ltd v Greenham [1966] 2 NSWR 717 Murray v Leisureplay plc [2005] EWCA Civ 963 National Bank of Commerce v National Westminster Bank [1990] 2 Lloyd's Rep 514 Nu Line Construction Group Pty Ltd v Fowler [2012] NSWSC 587 O'Dea v Allstates Leasing System (WA) Pty Ltd (1983) l52 CLR 359 Office of Fair Trading v Abbey National plc [2008] EWHC 875 (Comm) Perdaman Chemicals and Fertilisers Pty Ltd v ICICI Bank Ltd [2013] FCA 175 Perpetual Trustee Company Limited v Khoshaba [2006] NSWCA 41 Provident Capital Ltd v Papa [2013] NSWCA 36 Radin v Commonwealth Bank of Australia [1998] FCA 1361 Ringrow Pty Ltd v BP Australia Pty Ltd (2005) 224 CLR 656 Robophone Facilities v Blank [1966] 1 WLR 1428 Rolfe v Peterson (1772) 2 Bro PC 436 Roumanus v Orchard Holdings (NSW) Pty Ltd (in liq) (2012) 90 ACSR 677 Sent v Jet Corporation of Australia Pty Ltd (1986) 160 CLR 540 Sony Computer Entertainment Australia Pty Ltd v Stirling [2001] FCA 1852 Spiers Earthworks Pty Ltd v Landtec Projects Corporation Pty Ltd (No 2) (2012) 287 ALR 360 Tonto Home Loans Australia Pty Ltd v Tavares (2011) 15 BPR 29,699 Torrens Aloha Pty Ltd v Citibank NA (1997) 72 FCR 581 Wardley Australia Limited v Western Australia (1992) 175 CLR 514 Waterside Workers' Federation of Australia v Stewart (1919) 27 CLR 119 West v AGC (Advances) Ltd (1986) 5 NSWLR 610 Yarra Capital Group Pty Ltd v Sklash Pty Ltd [2006] VSCA 109 Mason, "'I'll have my bond; speak not against my bond': Constructive trusts and surplus proceeds from performance bonds" (2012) 6 Journal of Equity 74 Pomeroy JN, A Treatise on Equity Jurisprudence (5th ed, The Lawyers Co-operative Publishing Company 1941) Story J, Commentaries on Equity Jurisprudence as Administered in England and America, (13th ed, Boston: Little, Brown and Company, 1886)