National Australia Bank Limited v Smith [2014] NSWSC 1605

Supreme Court New South Wales

Medium Neutral Citation: National Australia Bank Limited v Smith [2014] NSWSC 1605 Hearing dates: 25-28 March 2013, 3, 4, 5, 15, 17, 18, 19, 22 April 2013 and 23 October 2013 Decision date: 13 November 2014 Jurisdiction: Common Law Before: Slattery J Decision: See paragraph [366]. Catchwords: BANKING - a bank advanced money to a company for the purchase of a business and took mortgage security over the domestic residence of the company's principal and his wife to support their guarantees of the bank's advance to the company - the company defaulted on the loan - the guarantors sold their residence partially to satisfy the Bank's claims on the guarantees - whether the Bank engaged in misleading and deceptive conduct or unconscionable conduct in relation to the guarantees and the mortgage - whether these securities are unjust under the Contracts Review Act 1980 - whether these securities should be declared void, varied or their provisions not enforced. Legislation Cited: Australian Securities and Investment Commission Act 2001 (Cth) Contracts Review Act 1980 (NSW) Fair Trading Act 1987 (NSW) Real Property Act 1900 (NSW) Cases Cited: Ankar Pty Limited v National Westminster Finance (Aust) Ltd (1987) 162 CLR 549 Antonovic v Volcker (1986) 7 NSWLR 151 Beneficial Finance Corporation v Karavas (1991) 23 NSWLR 256 Blomley v Ryan (1956) 99 CLR 362 CBA v Smith (1991) 42 FCR 390 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 Commonwealth Bank of Australia v Starrs [2012] SASC 222 Con-stan Industries of Australia Pty Limited v Norwich Winterthur Insurance (Australia) Limited (1986) 160 CLR 226 Daly v The Sydney Stock Exchange Ltd (1986) 160 CLR 371 Dilosa v Latec (Finance) Pty Limited (1966) 84 WN (Pt 1) (NSW) 557 Elkotairi v Permanent Trustee Co Limited (2002) 11 BPR 20 Fast Fixed Loans Pty Limited v Samardzic [2012] NSWCA 260 Garcia v National Australia Bank (1998) 194 CLR 395 Holme v Brunskill (1878) 3 QBD 495 Jones v Dunkel (1959) 101 CLR 298 Louth v Diprose (1992) 175 CLR 621 Nguyen v Taylor (1992) 27 NSW LR 48 Payne v Parker (1976) 1 NSWLR 191 Perpetual Trustee Company v Khoshaba [2006] NSWCA 41 (2005) 14 BPR 26 Perpetual Trustees Victoria v Longobardi [2009] NSWSC 654 Provident Capital Ltd v Papa [2013] NSWCA 36 Riz v Perpetual Trustee Australia [2007] NSWSC 1153 Sam Management Services (Aust) Pty Ltd v Bank of Western Australia Ltd [2009] NSWSC 676 State Bank of New South Wales v Chia (2000) 50 NSWLR 587 Sun North Investments Pty Ltd v Dale & Anor [2013] QSC 44 Ting v Blanche (1993) 118 ALR 543 Tonto Home Loans Australia Pty Ltd v Tavares [2011] NSWCA 389 West v AGC (Advances) Ltd (1986) 5 NSWLR 610 Westpac Banking Corporation v Belgroup Ltd (in liq) (No. 3) [2012] WASCA 157 Yerkey v Jones (1939) 63 CLR 649 Category: Principal judgment Parties: National Australia Bank (P) Craig Trevor Smith (D1) Denise Vitalli-Smith (D2) Patrick George Smith (D3) Nadine Anne Smith (D4) GHS Financial Services (XD) Representation: Counsel: D.C. Price (P) B. McClintock SC/G. Rubagotti (D1&2) M Tibbey (D3 and D4) B. McManus (XD) D.C. Price (P) B. McClintock SC/G. Rubagotti (D1&2) M Tibbey (D3 and D4) B. McManus (XD) Solicitors: Gadens Lawyers (Plaintiff) Peter Barker (D3 and D4) File Number(s): 2009/296546 Publication restriction: No