Allan John Bakarich and Anthony George Bakarich as Executors of the Estate of the late Mary Patricia Bakarich & Ors v Commonwealth Bank of Australia [2004] NSWSC 283

New South Wales Supreme Court

CITATION : Allan John Bakarich and Anthony George Bakarich as Executors of the Estate of the late Mary Patricia Bakarich & Ors v Commonwealth Bank of Australia [2004] NSWSC 283 HEARING DATE(S) : 10/11/03; 11/11/03; 12/11/03; 13/11/03; 14/11/03; 17/11/03; 18/11/03; 19/11/03; 20/11/03; 21/11/03; 24/11/03; 25/11/03; 27/11/03; 28/11/03; 01/12/03; 02/12/03; 03/12/03 JUDGMENT DATE : 20 April 2004

JUDGMENT OF : Nicholas J DECISION : Plaintiffs' claim dismissed. Judgment for the Defendant.

CATCHWORDS : EQUITY - Equitable relief - Guarantees and mortgage for bank loans - claims for relief under s 52 Trade Practices Act 1974 (Cth) - whether Plaintiffs induced to provide securities for loan by bank's false and misleading conduct - whether transactions unconscionable - whether principle in Commercial Bank of Australia v Amadio (1983) 151 CLR 447 applies - whether variation of agreement discharged Plaintiffs from liability under the securities - whether principle in Ankar Pty Ltd v National Westminster Finance (Aust) Ltd (1987) 162 CLR 549 applies - whether guarantees and mortgage unjust under s 7(1) Contracts Review Act 1980 (NSW) - whether undue influence Contracts Review Act 1980 (NSW) ss 4(1); 7(1); 9(1); 9(2)(a) to (k); 15 LEGISLATION CITED : Real Property Act 1900 (NSW) s 57(2)(b) Trade Practices Act 1974 (Cth) s 52 Ankar Pty Ltd v National Westminster Finance (Aust) Ltd (1987) 162 CLR 549 Australian Competition and Consumer Commission v C G Berbatis Holdings Pty Ltd [2003] HCA 18; (2003) 77 ALJR 926 Baltic Shipping Company v Dillon (1991) 22 NSWLR 1 Blomley v Ryan (1956) 99 CLR 362 Commercial Bank of Australia v Amadio (1983) 151 CLR 447 Commonwealth Bank of Australia v McArthur [2003] VSC 31 Corumo Holdings Pty Ltd v C Itoh Ltd (1991) 24 NSWLR 370 CASES CITED : Cubillo v Commonwealth of Australia (2000) 174 ALR 97 Elkofairi v Permanent Trustee Co Ltd [2002] NSWCA 413 Esanda Finance Corp Ltd v Tong (1997) 41 NSWLR 482 Falinski v Commonwealth Bank of Australia [Unreported, NSWCA, 6 February 1998] Radan v Commonwealth Bank of Australia (23 October 1998, BC9805707) State Bank of New South Wales Ltd v Chia & Anor (2000) 50 NSWLR 587 Watson v Foxman (1995) 49 NSWLR 315 at 318-319 West v AGC (Advances) Ltd (1986) 5 NSWLR 610 Westpac Banking Corporation v Robinson (1993) 30 NSWLR 668 Allan John Bakarich and Anthony George Bakarich as Executors of the Estate of the late Mary Patricia Bakarich - First Plaintiff Allan John Bakarich - Second Plaintiff PARTIES : Anthony George Bakarich - Third Plaintiff Vitlern Pty Limited - Fourth Plaintiff A Bakarich Industries Pty Limited - Fifth Plaintiff Commonwealth Bank of Australia - Defendant FILE NUMBER(S) : SC 5840/92 COUNSEL : B Coles QC, R J Powell SC, M R Tyson - Plaintiffs J R Sackar QC, M T McCulloch, T M Thawley - Defendant SOLICITORS : Bowring Stone - Plaintiffs Shaw McDonald - Defendant