STATE BANK OF NSW v. HIBBERT & ALSO GROOM v. HIBBERT [2000] NSWSC 628

Reported Decision : (2000) Aust Contract Reports (Digest) 90-119

New South Wales Supreme Court

CITATION : STATE BANK OF NSW v. HIBBERT & ALSO GROOM v. HIBBERT [2000] NSWSC 628 CURRENT JURISDICTION: COMMON LAW DIVISION & EQUITY DIVISION FILE NUMBER(S) : SC CLD 13167/92 ; Eq 1935/99 HEARING DATE(S) : 10/11/99-12/11/99, 3/02/00-04/02/00, 21/03/00-22/03/00. JUDGMENT DATE : 6 July 2000

State Bank of New South Wales Ltd - Pltf in CLD, 2nd Dft in ED PARTIES : Paul Hibbert - 1st Dft Sondra Groom - 2nd Dft in CLD, Pltf in ED JUDGMENT OF : Bryson J at 1

P. Dowdy for Pltf in CLD, 2nd Dft in ED COUNSEL : J. Wilson for 1st Dft J. Thomson for 2nd Dft in CLD, Pltf in ED Minter Ellison for Pltf in CLD, 2nd Dft in ED SOLICITORS : Taylor & Scott for 1st Dft P.A. Keith for 2nd Dft in CLD, Pltf in ED

CATCHWORDS : EQUITY - husband and wife - whether principles in Garcia are available in De Facto relationship - held, no. - CONTRACTS - Contracts Review Act. - MORTGAGE - relief under Contracts Review Act. Bank lent money to Vertee P/L on mortgage and guarantee of Mr H and Mrs G (de facto partners) to make investment in Mr H's employer - Mrs G thereby imposed large burden on herself and her half share in dwelling - loan money mostly applied for Mr H to purchase other half share from Mr G - insufficient amount applied to investment to obtain interest in employer - Bank's appraisal of loan application was inadequate as overall the proposal and repayment were unfeasible - Mr H misrepresented the transaction to Mrs G - on the facts, Bank did not owe duty to Mr H or Mrs G - Mr H liable to Mrs G for misrepresentation - Mr G granted relief against Bank under Contracts Review Act - Mr H refused relief. Garcia v. National Australia Bank Ltd (1998) 194 CLR 395 CASES CITED : Yerkey v. Jones (1939) 63 CLR 649 Israel v. Foreshore Properties Pty Ltd (in Liq) (1980) 54 ALJR 421 DECISION : See para 78 - parties to bring in Short Mintues