RHG Mortgage Corporation Ltd v Baira; RHG Mortgage Corporation Ltd v Ianni [2014] NSWSC 849

Supreme Court New South Wales

Medium Neutral Citation: RHG Mortgage Corporation Ltd v Baira; RHG Mortgage Corporation Ltd v Ianni [2014] NSWSC 849 Hearing dates: 3 - 7 March 2014; 10 - 11 March 2014; 8 - 9 May 2014 Decision date: 01 July 2014 Jurisdiction: Common Law Before: Davies J Decision: The parties should bring in Short Minutes to reflect these reasons. Catchwords: REAL PROPERTY - possession of land - mortgages - default - Contracts Review Act - parents of borrowers gave guarantees and mortgages - transfer of banks by borrowers - parents become borrowers and mortgagors - knowledge of parents - whether kept in the dark by children who benefited from loans - whether change of status explained by lawyers or other persons - improvidence of loan agreements - notice of lender of true position - failure of lender to follow guidelines - effect on lending - mortgage broker - whether agent of lender for purposes of Financial Transaction Act EVIDENCE - proof - inferences - failure of both sides to call some witnesses - whether Jones v Dunkel inference available - effect of such inference Legislation Cited: Contracts Review Act 1980 (NSW) Financial Transactions Report Act 1988 (Cth) Financial Transactions Reports Regulations 1990 (Cth) Cases Cited: Baira v RHG Mortgage Corporation Limited [2012] NSWCA 387 Beneficial Finance Corp Limited v Karavas (1991) 23 NSWLR 256 Blomley v Ryan (1956) 99 CLR 362 Briginshaw v Briginshaw (1938) 60 CLR 336 Collier v Moreland Finance Corp (1989) 6 BPR 13, 337; [1989] ANZ ConvR 515 Commercial Bank of Australia v Amadio (1983) 151 CLR 447 Davey v Challenger Managed Investments [2003] NSWCA 172 Fabre v Arenales (1992) 27 NSWLR 437 Ho v Powell [2001] NSWCA 168; (2001) 51 NSWLR 572 Jones v Dunkel (1959) 101 CLR 298 Nguyen v Taylor (1992) 27 NSWLR 48 O'Donnell v Reichard [1975] VR 916 Perpetual Trustee Company Limited v Khoshaba [2006] NSWCA 41 RHG Mortgage Corporation Ltd v Ianni [2011] NSWSC 520 Toll (FGCT) Pty Ltd v Alphapharm Pty Limited [2004] HCA 52; (2004) 219 CLR 165 Tonto Home Loans Australia Pty Ltd v Tavares [2011] NSWCA 389 Westpac Banking Corporation v Velingos [2011] NSWSC 607 Category: Principal judgment Parties: BAIRA PROCEEDINGS RHG Mortgage Corporation Ltd (Plaintiff/First Cross-Defendant) Rosa Baira aka Rosa Fioravanti (Defendant/Cross-Claimant) Australian Mortgage & Business Finance Solutions Pty Ltd (Second Cross-Defendant)