Timms v Commonwealth Bank of Australia; Commonwealth Bank of Australia v Timms [2004] NSWSC 76

New South Wales Supreme Court

CITATION : Timms v Commonwealth Bank of Australia; Commonwealth Bank of Australia v Timms [2004] NSWSC 76 revised - 26/02/2004 HEARING DATE(S) : 17/06/03; 18/06/03; 19/06/03; 20/06/03; 23/06/04; 24/06/03; 25/06/03; 26/06/03; 27/06/03; 26/09/03; 30/09/03; 01/10/03 JUDGMENT DATE : 24 February 2004 JURISDICTION: Equity Division JUDGMENT OF : Barrett J DECISION : Plaintiffs' claims of misleading or deceptive conduct, breach of fiduciary duty and negligence against bank dismissed. Plaintiffs' claims of breach of retainer and negligence against accountants dismissed. Bank entitled to judgments for debt and order for possession of mortgaged premises.

CATCHWORDS : TRADE AND COMMERCE - misleading or deceptive conduct in trade - whether bank made untrue representation as to state of business being purchased by customer applying for acquisition finance - whether bank's failure to correct customer's statement as to state of business known to the bank to be incorrect actionable - whether bank's failure to inform customer of customer's accountant's failure to give favourable report on financial position of business actionable - EQUITY - fiduciary duty - whether bank owed fiduciary duty to customer in connection with customer's purchase of business financed by bank - TORTS - negligence - duty of care owed by bank to customer - PROFESSIONS AND TRADES - accountants - nature and incidents of retainer of accountant advising on purchase of business - whether breach of contract or negligence - ELECTION - circumstances in which person with inconsistent rights, having resorted to one, may not resort to the other - whether creditor properly regarded as having concurrent rights to sue for full debt and to sue for such smaller amount as creditor chooses Australian Competition and Consumer Commission v Oceana Commercial Pty Ltd [2003] FCA 1516 Briginshaw v Briginshaw (1938) 60 CLR 336 Commonwealth v Verwayen (1990) 170 CLR 394 Commonwealth Bank of Australia v Finding [2001] 1 QdR 168 Commonwealth Bank of Australia v Smith (1991) 102 ALR 453 Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31 Dobbs v National Bank of Australasia Ltd (1935) 53 CLR 643 Franklin's Selfserve Pty Ltd v Federal Commissioner of Taxation (1970) 125 CLR 52 G E Crane Pty Ltd v Federal Commissioner of Taxation (1971) 126 CLR 177 Gold v Essex County Council [1942] 2 KB 293 Immer (No 145) Pty Ltd v Uniting Church in Australia Property Trust (NSW) (1993) 182 CLR 26 CASES CITED : Kratzmann v Federal Commissioner of Taxation (1970) 44 ALJR 293 In re London and General Bank (No 2) [1895] 2 Ch 673 Metalcorp Recyclers Pty Ltd v Metal Manufactures Ltd [2003] NSWCA 213 Moukhayber v Camden Timber & Hardware Co Pty Ltd [2002] NSWCA 58 New South Wales v Lepore (2003) 77 ALJR 558 Point v Federal Commissioner of Taxation (1970) 119 CLR 453 Rehsa Shipping Co SA v Edmunds [1985] 1 WLR 948 Sanders v Snell [2003] FCAFC 150 Sargent v ASL Developments Ltd (1974) 131 CLR 634 Shomat Pty Ltd v Rubinstein (1995) 124 FLR 284 United Australia Ltd v Barclays Bank Ltd [1941] AC 1 Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 Watson v Foxman (1995) 49 NSWLR 315 2644/94 Anastasia Timms - First Plaintiff Brian Timms - Second Plaintiff TW Holdings Pty Limited - Third Plaintiff BDA International Pty Limited - Fourth Plaintiff Commonwealth Bank of Australia - First Defendant Leslie Ludovic Rosenfeld and Alfred Kant t/as Rosenfeld Kant & Co - Third Defendants 3054/97 PARTIES : Commonwealth Bank of Australia - Plaintiff Anastasia Timms - First Defendant Brian Timms - Second Defendant TW Holdings Pty Limited - Third Defendant BDA International Pty Limited - Fourth Defendant 2644/94 Anastasia Timms - First Plaintiff Brian Timms - Second Plaintiff TW Holdings Pty Limited - Third Plaintiff BDA International Pty Limited - Fourth Plaintiff FILE NUMBER(S) : SC 2644/94; 3054/97 2644/94 Mr A J Sullivan QC/Mr M Clarke - First to Fourth Plaintiffs Mr R G Forster SC/Mr N Manousaridis - First Defendant COUNSEL : Mr R E Dubler - Third Defendant 3054/97 Mr R G Forster SC/Mr N Manousaridis - Plaintiff Mr A J Sullivan QC/Mr M Clarke - First to Fourth Defendants 2644/94 Browne & Co - First to Fourth Plaintiffs L E Taylor - First Defendant SOLICITORS : Phillips Fox - Third Defendants 3054/97 L E Taylor - Plaintiff Browne & Co - First to Fourth Defendants