Gooley v NSW Rural Assistance Authority (No 3) [2019] NSWSC 1314

Supreme Court New South Wales

Medium Neutral Citation: Gooley v NSW Rural Assistance Authority (No 3) [2019] NSWSC 1314 Hearing dates: 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 15, 23, 24, 29, 30 April 2019; 15 May 2019; 23 July 2019; further written submissions ending 9 August 2019 Date of orders: 30 September 2019 Decision date: 30 September 2019 Jurisdiction: Equity Before: Parker J Decision: See [724]. Catchwords: EVIDENCE — records of prior communications concerning FOS complaint – admissibility – hearsay – prior consistent statement.

EVIDENCE — Opinion evidence — Expert opinion –economist's opinion about conduct of bank towards customers – admissibility – Makita principles.

CONTRACTS – Performance – Variation of Terms –variation of loan repayment terms – need for consideration – assumption of risk that variation may benefit either party.

CONTRACTS — Misleading conduct under statute —variation of loan terms purportedly without customer's knowledge and approval – misleading or deceptive conduct - unconscionable conduct - estoppel.

BANKING AND FINANCE — Banks – Statutory unconscionability – two year commercial loan – "asset lending" – breach of term of contract incorporating Banking Code of Practice.

BANKING AND FINANCE — Banks – breach of term of contract incorporating Banking Code of Practice cll 25.2 and 2.2 – requirement under term for co-operation between the customer and Bank – no breach by fixing final date for repayment after period of forbearance.

BANKING AND FINANCE — Banks — Bank accounts — Interest – entitlement to charge interest at contractual rates following expiry of loan – entitlement to interest on amounts paid and set aside for costs – repudiation – termination. Legislation Cited: Evidence Act 1898 (NSW), s 14B Evidence Act 1995 (NSW), ss 55, 59, 60(1), 69, 79 and 135 Farm Debt Mediation Act 1994 (NSW), ss 4 and 6. Cases Cited: Comlin Holdings Pty Ltd v Metlej Developments Pty Ltd (No 3) [2019] NSWCA 214 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 Dasreef Pty Limited v Hawchar (2011) 243 CLR 588; [2011] HCA 21 Drivas v Jakopovic [2018] NSWSC 1803 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423; [1978] HCA 12 Elayoubi v Zipser [2008] NSWCA 335 Kowalczuk and Another v Accom Finance Pty Ltd [2008] NSWCA 343 Makita (Australia) Pty Ltd v Sprowles (2001) 52 NSWLR 705; [2001] NSWCA 305 Neville v Lam (No 3) [2014] NSWSC 607 Parslow v NSW Land & Housing Corporation [2018] NSWSC 843 Perpetual Trustee Co Ltd v Khoshaba [2006] NSWCA 41 Ritz Hotel Limited v Charles of the Ritz Limited (Nos 15 and 16) (1988) 14 NSWLR 107 Sellars v Adelaide Petroleum NL (1994) 179 CLR 332; [1994] HCA 4 Tabet v Gett (2010) 240 CLR 537; [2010] HCA 12 Toll (FGCT) Pty Limited v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Trilogy Funds Management Ltd v Sullivan (No 2) (2015) 111 ACSR 1; [2015] FCA 1452 Vanbergen v St Edmunds Properties Ltd [1933] 2 KB 223 W J Alan & Co Ltd v El Nasr Export and Import Co [1972] 2 QB 189; [1972] 2 ALL ER 127 Watson v Foxman (1995) 49 NSWLR 315 Woodhouse AC Israel Cocoa Ltd SA v Nigerian Produce Marketing Co Ltd [1972] AC 741; [1972] 2 ALL ER 271 Texts Cited: G H Treitel, The Law of Contract (11th ed, 2003, Sweet & Maxwell Ltd) J D Heydon, Heydon on Contract: The General Part (5th ed, 2019, Lawbook Co.) Category: Principal judgment Parties: Paul Gerard Gooley (First Plaintiff/First Cross-Defendant) Susan Jane Gooley (Second Plaintiff/Second Cross-Defendant) Commonwealth Bank of Australia (Defendant/Cross-claimant)