Kaji Australia Pty Ltd v Glover (No. 4) [2019] NSWSC 1779

Supreme Court New South Wales

Medium Neutral Citation: Kaji Australia Pty Ltd v Glover (No. 4) [2019] NSWSC 1779 Hearing dates: 15-18 April 2019; 23-24 April 2019; 26 April 2019 & 3 May 2019 Date of orders: 17 December 2019 Decision date: 17 December 2019 Jurisdiction: Common Law Before: Davies J Decision: The plaintiffs must bring in short minutes to reflect this judgment. Catchwords: LAND LAW – possession of land – claim for possession and judgment for the amount owing under a loan agreement and mortgage – short-term loan pending approval of long-term finance - where the borrower had failed to repay the loan pursuant to the loan agreement – lenders entitled to possession and amount owing under loan agreement – parties instructed to bring in short minutes to quantify sum owing

CONSUMER LAW – unconscionability – where the borrower claimed that the loan agreement was unconscionable either under the general law or statute – where the borrower claimed that the lenders should have requested proof of income – where the borrower claimed that a third party was exerting undue influence over him to the knowledge of the lenders – where the borrower claimed that he did not receive adequate independent advice about the loan agreement – where the borrower claimed that the loan was improvident because there was no effective exit strategy - no finding of unconscionability

CONTRACT – unjust contract – whether the loan agreement was unjust pursuant to the Contracts Review Act 1980 (NSW) – where the borrower was aware at all times of the interest rates being charged – where the borrower understood the risks of entering into the mortgage – no evidence that the interest rates were unreasonably high or not reasonably necessary for the protection of the plaintiffs – contract not unjust