Wily & Anor v Endeavour Health Care Services Pty Ltd & Anor (No 5) [2003] NSWSC 616

New South Wales Supreme Court

CITATION : Wily & Anor v Endeavour Health Care Services Pty Ltd & Anor (No 5) [2003] NSWSC 616 HEARING DATE(S) : 23/06/03, 24/06/03, 25/06/03, 30/06/03, 3/7/03 JUDGMENT DATE : 16 July 2003

JUDGMENT OF : Gzell J DECISION : Mortgagor not entitled to relief

CATCHWORDS : MORTGAGES - Remedies of the Mortgagor - Clog on the equity of redemption - Collateral advantage - Option to purchase - Whether transaction, in substance, a mortgage - Whether clog rule binding on single judge - Whether unconscionability the only basis for unenforceability of collateral advantage Trade Practices Act 1974 (Cth) LEGISLATION CITED : Real Property Act 1900 Privy Council (Appeals from the High Court) Act 1975 (Cth) Jones v Dunkel (1959) 101 CLR 298 G & C Kreglinger v New Patagonia Meat and Cold Storage Co Ltd [1914] AC 25 Jones v Morgan [2001] EWCA Civ 995 Noakes & Co Ltd v Rice [1902] AC 24 Reeve v Lisle [1902] AC 461 Samuel v Jarrah Timber and Wood Paving Corp Ltd [1904] AC 323 Westfield Holdings Ltd v Australian Capital Television Pty Ltd (1992) 32 NSWLR 194 Re Modular Design Group Pty Ltd (in liq) (1994) 35 NSWLR 96 Epic Feast Pty Ltd v Mawson KLM Holdings Pty Ltd (in liq) (1998) 71 SASR 161 Baker v Biddle (1923) 33 CLR 188 CASES CITED : Jacobs v London County Council [1950] AC 361 Toohey v Gunther (1928) 41 CLR 181 Lord Strathcona Steamship Co Ltd v Dominion Coal Co Ltd [1926] AC 108 Fairclough v Swan Brewery Co Ltd [1912] AC 565 Viro v The Queen (1976-1978) 141 CLR 88 Blomley v Ryan (1956) 99 CLR 362 Commercial Bank of Australia Ltd v Amadio (1982-1983) 151 CLR 447 Louth v Diprose (1992) 175 CLR 621 Fisher and Lightwood's Law of Mortgage, Australian ed, Butterworths, 1995 Sykes and Walker: The Law of Securities, 5th ed, Law Book Co, 1993 Meagher, Gummow and Lehanes' Equity Doctrines and Remedies, 4th ed, Butterworths Lexis Nexis, Australia, 2002 Peter Butt: Land Law, 4th ed, Law Book Co, 2001 Andrew Hugh Jenner Wily (in his capacity as Administrator of Macquarie Medical Holdings Pty Ltd) - 1st Plaintiff PARTIES : Macquarie Medical Holdings Pty Ltd - 2nd Plaintiff Endeavour Health Care Services Pty Ltd - 1st Defendant Maxwell William Prentice and Mark Julian Robinson (in their capacity as Receivers & Managers of Macquarie Medical Holdings Pty Ltd) - 2nd Defendants FILE NUMBER(S) : SC 2560/03 Mr T Hale SC/ Mr J K Chippindall - Plaintiffs COUNSEL : Mr A Bannon SC/ Mr B Katekar - 1st Defendant Mr J E Thomson/ Ms A Gruzman - 2nd Defendant M D Nikolaidis & Co Solicitors - Plaintiffs SOLICITORS : Gilbert and Tobin Lawyers - 1st Defendant Gray & Perkins Lawyers - 2nd Defendant