O'Brien v Bank of Western Australia Ltd [2013] NSWCA 71

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: O'Brien v Bank of Western Australia Ltd [2013] NSWCA 71 Hearing dates: 31 January 2013 Decision date: 11 April 2013 Before: Beazley P at [1] Macfarlan JA at [2] Ward JA at [26] Decision: 1. Leave to appeal is granted. 2. Appeal is allowed with costs. 3. Judgment and orders 1-5 made by the Court on 3 May 2012 be set aside and in lieu thereof order that the plaintiff's notice of motion filed 2 February 2012 be dismissed with costs. 4. Direct parties to approach the Registrar in Equity for a date for directions in this matter. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: CONTRACT - contract of guarantee - construction of suspension/preservation of rights clauses and no waiver clauses -whether affirmative defences that, if proved, may lead to relief that would have the effect that there was no relevant failure to pay by the borrower as at the relevant date fall within the operation of the said clauses as properly construed

PRACTICE AND PROCEDURE - civil -summary judgment - whether there is an underlying defence that has a real or more than fanciful prospect of success Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) s 12GM Civil Procedure Act 2005 (NSW) ss 21, 22, 56-9 Federal Court of Australia Act 1976 (Cth) s 31A Statute Law (Miscellaneous Provisions) Act (No 3) 1992 Supreme Court Act 1970 (NSW) s 62 and Rules Trade Practices Act 1974 (Cth) ss 45 and 52 Cases Cited: Agar v Hyde (2000) 201 CLR 552; [2000] HCA 41 Bakota Holdings Pty Ltd v Bank of Western Australia Ltd [2011] NSWSC 1277 Batistatos v Roads and Traffic Authority (NSW) [2006] HCA 27; (2006) 226 CLR 256 Batiste v Lenin (2002) 11 BPR 20,403; [2002] NSWCA 316 Bitannia Pty Ltd v Parkline Constructions Pty Ltd (2006) 67 NSWLR 9; [2006] NSWCA 238 Buckeridge v Mercantile Credits Ltd (1981) 147 CLR 654 Capital Finance Australia Ltd v Airstar Aviation Pty Ltd [2003] QSC 151; [2004] 1 Qd R 122 Coca-Cola Financial Corporation v Finsat International Ltd [1998] QB 43 Commonwealth v Verwayen (1990) 170 CLR 394 Connaught Restaurants Ltd v Indoor Leisure Ltd [1994] 1 WLR 501; [1994] 4 All ER 834 Continental Illinois National Bank & Trust Company of Chicago v Papanicolaou ("The Fedora") [1986] 2 Lloyd's Rep 441 Daewoo Australia P/L v Porter Crane Imports P/L t/a Betta Machinery Sales [2000] QSC 050 Dey v Victorian Railways Commissioner (1949) 78 CLR 62 Esanda Finance Corporation Limited v Peat Marwick Hungerford (1997) 188 CLR 241;[1997] HCA 8 Fancourt v Mercantile Credits Ltd (1983) 154 CLR 87 GE Capital Australia v Davis [2002] NSWSC 1146, (2002) 180 FLR 250 General Steel Industries Inc v Commissioner for Railways (New South Wales) (1964) 112 CLR 125 Grant v NZMC Ltd [1989] 1 NZLR 8 House v R (1936) 55 CLR 499 Hunt v Knabe (No 2) (1992) 8 WAR 96 Kammins Ballrooms Co Ltd v Zenith Investments (Torquay) Ltd [1971] AC 850 King Investment Solutions Pty Ltd v Hussain [2005] NSWSC 1076 Macatangay v State of New South Wales (No 2) [2009] NSWCA 272 McDonnell & East Limited v McGregor (1936) 56 CLR 50 Porter Crane Imports P/L v Daewoo Australia P/L [2000] QSC 051 Re Norman; Re Forest Enterprises Ltd (2011) 280 ALR 470; [2011] FCA 99 Saleh v Romanous (2010) 79 NSWLR 453; [2010] NSWCA 274 Spencer v Commonwealth of Australia [2010] HCA 28; (2010) 241 CLR 118 St George Bank Ltd v Field [2007] NSWSC 902 State Bank of Victoria v Parry (1989) 7 ACLR 226 Sunbird Plaza Pty Ltd v Moloney (1988) 166 CLR 245 Thomas v Stockman & Evans [2012] NSWCA 444 Town & Country Sport Resorts (Holdings) Pty Ltd & ors v Partnership Partnership Pacific Ltd (1988) 20 FCR 540 Trau v University of Sydney [1995] HCA Trans 409 Wang v State of New South Wales [2009] NSWCA 340 Webster v Lampard (1993) 177 CLR 598 Westpac Banking Corporation v Matich (unreported, 21/11/1997, 50183/1997) Westpac Banking Corporation v Prelea (1992) 28 NSWLR 481 White Industries Australia Ltd v Federal Commissioner of Taxation [2007] FCA 511; (2007) 160 FCR 298 Texts Cited: Derham, The Law of Set-Off (3rd edn & 4th edn) Ritchies' Commentary on the Uniform Civil Procedure Act Category: Principal judgment Parties: Rory Francis O'Brien (First appellant) Bakota Holdings Pty Ltd (Second appellant) Bank of Western Australia Ltd (Respondent) Representation: Counsel: B W Walker SC with R A Yezerski (Appellants) J C Sheahan SC with P Dowdy, A K Flecknoe-Brown (Respondent) Solicitors: Russells (Appellants) Ashurst Australia (Respondent) File Number(s): CA 12/172170 Decision under appeal Citation: [2012] NSWSC 456 Date of Decision: 2012-05-02 00:00:00 Before: McDougall J File Number(s): 11/229400