Karam v ANZ Banking Group Limited & 1Ors [2003] NSWSC 866

New South Wales Supreme Court

CITATION : Karam v ANZ Banking Group Limited & 1Ors [2003] NSWSC 866 HEARING DATE(S) : 19 June 2003 JUDGMENT DATE : 22 September 2003 JURISDICTION: Equity JUDGMENT OF : Santow J DECISION : Other than $63,549 on the equipment account, the Bank fails on its cross-claim. Bank liable to Plaintiffs for $1,235,575 (plus interest as calculated after 14 January 2003) with respect to the residential properties. Bank to pay 85% of the Plaintiffs' costs of the proceedings. Final orders to be submitted by the parties within 14 days.

CATCHWORDS : BANKING - Appropriation of payment - what constituted a "true inference" to appropriate - authority to debit payments on Bank's part - does it preclude earlier appropriation by debtor by deposit into trading account - Can a deposit into a certain account suffice for an appropriation vis a vis the Bank. Farrow Finance Company Ltd (in liquidation) v ANZ Executors and Trustee Company Ltd & Ors (Supreme Court of Victoria, 13 December 1996, unreported) Healey v Commonwealth Bank of Australia [1998] NSWSC 678 CASES CITED : Knysh v Corrales Pty Limited (1989) 15 ACLR 629 Leeson v Leeson (1936) 2 KB 156 Parker v Guinness (1910) 27 TLR 129 Re Walsh: ex parte Deputy Commissioner of Taxation (NSW) (1982) 42 ALR 727 Charles Raymond KARAM (First Plaintiff; First Cross-Defendant) John Raymond KARAM (Second Plaintiff; Second Cross-Defendant) PARTIES : Nada Marie KARAM (Third Plaintiff; Third Cross-Defendant) Diane KARAM (Fourth Plaintiff; Fourth Cross-Defendant) AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED (First Defendant; Cross-Claimant) William Croker (Second Defendant) FILE NUMBER(S) : SC 2142/97 COUNSEL : M L D Einfeld, QC (Plaintiffs; Cross-Defendants) M Walton, SC/ P J Dowdy (First Defendant; Cross-Claimant) SOLICITORS : Webster O'Halloran Associates (Plaintiffs; Cross-Defendants) Coudert Brothers (First Defendant; Cross-Claimant)