Shah v Commonwealth Bank of Australia [2016] NSWSC 518

Supreme Court New South Wales

Medium Neutral Citation: Shah v Commonwealth Bank of Australia [2016] NSWSC 518 Hearing dates: 27 April 2016 Date of orders: 27 April 2016 Decision date: 27 April 2016 Jurisdiction: Equity Before: Slattery J Decision: Directions made for plaintiff to inform the Court by 10 May 2016 whether she intends to commence proceedings against the solicitor the subject of her allegations against the defendant Bank. Catchwords: EQUITY – application by plaintiff wife to set aside guarantee signed in favour of defendant bank - application by defendant bank to strike out Statement of Claim – plaintiff wife signed guarantee of a company controlled by her husband in favour of defendant bank to provide credit facility to husband's company – plaintiff wife signed extensions to the guarantee on four subsequent occasions – plaintiff wife claims that she was unaware of poor financial circumstances of the company or the rate of interest accrual on the company's obligations to the Bank- in prior recovery action by the Bank the plaintiff and plaintiff's husband jointly advised by solicitor, allegedly giving rise to potential situation of conflict of interest – whether Bank aware of alleged conflict of interest - whether plaintiff's pleading discloses proper cause of action or is bound to fail.

PROCEDURE – avoidance of multiplicity of proceedings – plaintiff asked whether the plaintiff intends to maintain any action against the solicitor who jointly advised the plaintiff and her husband in earlier proceedings and subsequent settlement, for alleged failure to act upon an unresolved conflict of interest - whether any such cause of action against solicitor should be joined to current proceedings in accordance with Civil Procedure Act s 56. Legislation Cited: Civil Procedure Act 2005, s 56 Competition and Consumer Act 2010 (Cth) Contracts Review Act 1980 (NSW) Cases Cited: Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 Garcia v National Australia Bank Ltd (1998) 194 CLR 395; [1998] HCA 48 Category: Procedural and other rulings Parties: Plaintiff: Vicki Shah Defendant: Commonwealth Bank of Australia Representation: Counsel: