Manso & anor v David & ors [2003] NSWSC 905

New South Wales Supreme Court

CITATION : Manso & anor v David & ors [2003] NSWSC 905 HEARING DATE(S) : 20/2/02, 21/2/02, 11/4/03, 14/4/03 JUDGMENT DATE : 3 October 2003

JUDGMENT OF : O'Keefe J DECISION : 1. I strike out paragraphs 23, 24, 25 and 26 of the plaintiffs' Amended Statement of Claim; 2. I dismiss the actions by the plaintiffs based on such paragraphs, ie, on the provisions of ss 51AC of the Trade Practices Act 1974 and ss 12CA, 12CB and 12ED of the Australian Securities and Investment Commission Act 2001 or the equivalent provisions of the former such legislation, and negligence; 3. I give leave to the second plaintiff, if so advised, to replead within 28 days in respect of any claim asserted by him under the Contracts Review Act 1980; 4. The plaintiffs are to pay the costs of the seventh and eighth defendants of the motion.

CATCHWORDS : Practice and procedure - Pleading - Strikeout - Summary judgment - Agreement for loan - Mortgage - Claims against lender, mortgage broker and mortgagee - Provision of financial services - Financial service - Financial product - Making of a loan not a financial service - Mortgage not a financial product - Loan for refinancing mortgage and for personal and investment purposes not a supply of goods or services within Trade Practices Act - Negligence - Pure economic loss - No advice given by, or sought from, lender or broker - No duty of care - Unjust contract - Unconscionability Australian Securities and Investment Commission Act 2001 Contracts Review Act 1980 Corporations Law - ss 601ED, 995, 999 Fair Trading Act 1980 - ss 7, 42, 62 LEGISLATION CITED : Life Insurance Act 1995 Retirement Savings Accounts Act 1997 Superannuation Industry (Supervision) Act 1993 Trade Practices Act 1974 - ss 51AC, 52, 61, 79, 80, 82, 87 Supreme Court Rules - Part 13, rule 5; Part 15, rule 26 Federal Court Rules - Order 20, rule 2 Agar v Hyde; Agar v Worsley (1999-2000) 201 CLR 552 Batchelor and Co Pty Ltd v Websdale (1962) NSWR 1441 Beneficial Finance Corporation v Karavas (1991) 23 NSWLR 256 Blomley v Ryan (1956) 99 CLR 362 Burt v Australia and New Zealand Banking Group Limited (1994) 16 ATPR 46-123 Caltex Oil (Australia) Pty Limited v The Dredge "Willemstad" (1976) 136 CLR 529 Castles v Freidman (1910) 11 CLR 580 Cole v Challenge Bank Limited (2001) FCA 1425 Commercial Banking Co of Sydney Ltd v Pollard (1983) 1 NSWLR 74 Commercial Bank of Australia v Amadio (1983) 151 CLR 447 Cortis Exhaust Systems v Kitten Software Pty Limited (2001) ATPR 41-837 Dey v Victorian Railway Commissioners (1949) 78 CLR 62 CASES CITED : General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125 Hedley Byrne & Co Ltd v Heller & Partners Ltd (1964) AC 465 Lawrance v Norreys (15 App. Cas 210) Louth v Diprose (1992) 175 CLR 621 Munroe Topple and Associates Pty Limited v Institute of Chartered Accountants in Australia ([2001] FCA 1056 Permanent Trustee Australia Limited v Saitannis [2002] NSWSC 1209 Perre v Apand Pty Limited (1999) 198 CLR 180 Spellson v George (1992) 26 NSWLR 666 Vitkovice Horni a Hutni Tezirstvo v Korner (1951) AC 869 at 883 Vinson v Prior Fibres Consolidated [1906] W.N. (Eng) Wells v Allott (1904) 2 KB 842 Wentworth v Rogers No.5 (1986) 6 NSWLR 534 Willis v Earl Howe (1893) 2 Ch. 545 Fudor Manso - First Plaintiff Joseph Benjamin - Second Plaintiff Fred David - First Defendant Suzie David - Second Defendant PARTIES : Paula Manuelpilla Dominic - Third Defendant Linda John Gloria Romano - Fourth Defendant Phillip Pham - Fifth defendant Alexander ATIC - Sixth defendant Perpetual Trustees Australia Limited - Seventh Defendant Royal Guardian Mortgage Corporation Pty Limited - Eight Defendant FILE NUMBER(S) : SC 20487/02 COUNSEL : Plaintiff - Mr S J Burchett Defendant - Mr A Bell SOLICITORS : Plaintiff - Mr Henrick Isaac Defendant - Mr Justin Bates - Gadens Lawyers