CHALHOUB v COMMONWEALTH BANK OF AUSTRALIA [1997] NSWCA 64

CHALHOUB v COMMONWEALTH BANK OF AUSTRALIA

SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL DISTRICT COURT

HANDLEY, POWELL and STEIN JJA 22 August 1997 , 1 October 1997 [1997] NSWCA 64

Contract of loan — appeal against finding of breach by debtor/appellant — interpretation of amended repayment plan — no defence to claim for repayment of loan

The appellant had various loans by way of overdraft and housing loans from the respondent. The appellant defaulted on repayments and made an alternative arrangement for repayment which the trial judge found was not complied with.

On appeal:

The appellant claimed that the trial judge wrongly interpreted the alternative repayment arrangement and, by way of cross claim, that payment by the respondent of the final payment under the housing loan into the overdraft account caused him financial detriment. There was also an error in the trial judge's calculation of interest on the judgment debt.

Held:

Apart from the calculation of interest on the judgment debt, no error by the trial judge was demonstrated.

Handley JA I agree with Stein JA. Powell JA I agree with Stein JA.

Stein JA The appellant, John Joseph Chalhoub, appeals against a judgment of Judge Craigie delivered in the District Court on 27 March 1995 in favour of the respondent, the Commonwealth Bank of Australia, in the sum of $96,304.70 plus interest calculated at $33,182.85.

INTRODUCTION

The background facts to the litigation are as follows:

¢ In February 1987 the appellant, who is a solicitor, opened a credit account with the respondent bank. In September of that year, the bank granted him an overdraft facility on the account. By June 1989 the bank had increased the overdraft limit to $80,000. This limit was later increased to $100,000.

¢ In May 1988, the appellant and his wife purchased vacant land at Wamberal. The bank approved a loan for $44,000 to assist in the purchase.