Australia and New Zealand Banking Group Ltd v Donnelly [2013] NSWSC 1760

Australia and New Zealand Banking Group Ltd v Donnelly [2013] NSWSC 1760

The Bank was entitled under the facility terms to convert the loan to AUD when the LVR exceeded 85% and the Donnellys did not provide additional security. No agreement existed to leave the loan in HKD. The conduct of the Bank, including explanations of risk, did not amount to unconscionable conduct or give rise to estoppel, and the necessary notices of assignment were given. The Bank is entitled to judgment for the debt and possession as against Mrs Donnelly.

Jurisdiction
Australia
Judgment Date
29 November 2013
Procedural Posture
Principal Judgment / Final Judgment
Outcome
Judgment for the Bank for debt and possession of the property as against Mrs Donnelly.
Legal Topics
['banker and Customer' 'dual Currency Loan Facility' 'conversion of Facility Currency' 'claim for Possession' 'unconscionable Conduct' 'estoppel' 'mortgage' 'assignment of Loan Facility']
['banking and Finance' 'real Property' 'equity'] ['banker and Customer' 'dual Currency Loan Facility' 'conversion of Facility Currency' 'claim for Possession' 'unconscionable Conduct' 'estoppel' 'mortgage' 'assignment of Loan Facility']

Case Brief

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Procedural Posture

Principal Judgment / Final Judgment

Legal Issues

  1. 1 ['Whether the Bank unlawfully converted the facility currency from HKD to AUD' 'Whether the loan facility was unconscionable and invalid due to conduct of the Bank' 'Whether an agreement existed that the loan would remain in HKD' 'Whether the Bank is estopped from relying on the currency conversion' 'Whether appropriate notice of assignment of facility was given']

Ratio Decidendi

The Bank was entitled under the facility terms to convert the loan to AUD when the LVR exceeded 85% and the Donnellys did not provide additional security. No agreement existed to leave the loan in HKD. The conduct of the Bank, including explanations of risk, did not amount to unconscionable conduct or give rise to estoppel, and the necessary notices of assignment were given. The Bank is entitled to judgment for the debt and possession as against Mrs Donnelly.

Court Disposition

Judgment for the Bank for debt and possession of the property as against Mrs Donnelly.

Orders

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