Commonwealth Development Bank of Australia Pty Limited & Anor v Claude George Rene Cassegrain; Gerald Cassegrain & Co Pty Limited & Ors v Commonwealth Development Bank of Australia Pty Limited & Ors; [2002] NSWSC 965

New South Wales Supreme Court

CITATION : Commonwealth Development Bank of Australia Pty Limited & Anor v Claude George Rene Cassegrain; Gerald Cassegrain & Co Pty Limited & Ors v Commonwealth Development Bank of Australia Pty Limited & Ors; [2002] NSWSC 965 FILE NUMBER(S) : SC 50062/00; 50072/00 HEARING DATE(S) : 08/10/02, 9/10/02, 10/10/02, 11/10/02, 14/10/02, 15/10/02, 16/10/02 JUDGMENT DATE : 22 October 2002

Commonwealth Development Bank of Australia Pty Limited (Plaintiff 50062/00) (Defendant 50072/00) PARTIES : Claude George Rene Cassegrain (Defendant 50062/00) Gerald Cassegrain & Co. Pty Limited and Ors (Plaintiffs 50072/00) Murray Smith and Scott Kershaw (3rd Defendants 50072/00) JUDGMENT OF : Einstein J

RW Cameron, ARR Vincent (Defendant 50062/00, Plaintiff 50072/00) COUNSEL : AG Bell, DA McLure (Plaintiff 50062/00, Defendant 50072/00) DL Williams (Murray Smith & Scott Kershaw, 3rd Defendants 50072/00) MC Griffith & Co (Defendant 50062/00, Plaintiff 50072/00) SOLICITORS : L E Taylor Solicitor (Plaintiff 50062/00, Defendant 50072/00) Corrs Chambers Westgarth (3rd Defendants 50072/00) CATCHWORDS : Contract - Banker and Customer - Loan facilities - Guarantee - Claim that CDBA and CBA acted unconscionably in dealings concerning facilities granted by both banks - Claim that CBA knowingly interfered with loan facility granted by CDBA with intention of procuring breach of facility - Alleged undisclosed decision to decline application for further accommodation - Alleged unconscionable conduct in delaying communication of suggested decision to decline further accommodation - Obligation to act in good faith - Alleged unconscionable conduct - Alleged misleading and deceptive conduct - Farm Debt mediation - Alleged unconscionable conduct in relation to holding of mediation - Claim to set aside Heads of Agreement reached during mediation on the ground of vitiating factors including alleged duress in terms of suggested threats to appoint receiver unless Heads of Agreement entered, in terms of emotional state of customer representative participating in mediation and other matters. Commonwealth Banks Act 1959 (Cth) Commonwealth Bank Sale Act 1995 (Cth) LEGISLATION CITED : Family Provision Act 1982 (NSW) Farm Debt Mediation Act 1994 (NSW) Trade Practices Act 1974 (Cth) ACCC v CG Berbatis Holdings Pty Ltd [2000] FCA 1376 Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349 Blomley v Ryan (1956) 99 CLR 362 Burger King Corp v Hungry Jack's Pty Ltd [2001] NSWCA 187 Byrne v Australian Airlines Ltd (1995) 185 CLR 410 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 CASES CITED : David Securities Pty Ltd v Commonwealth Bank of Australia (1992) 175 CLR 353 Hudson Resources Ltd v Australian Diatomite Mining Pty Ltd [2002] NSWSC 314 Jones v Dunkel (1959) 101 CLR 298 Louth v Diprose (1992) 175 CLR 621 Manifest Shipping Co Ltd v Uni-Polaris Shipping Co Ltd [2001] 2 WLR 170 Overlook v Foxtel [2002] NSWSC 17 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 Tymshare Inc v Covell 727 F2d 1145 (1984) DECISION : Claims by banking parties upheld. Claims by borrower parties not made out. Short minutes of order to be brought in.