Laws v Commonwealth Bank of Australia [1993] FCA 1087

Laws v Commonwealth Bank of Australia [1993] FCA 1087

The applicant's amended statement of claim did not disclose any factual basis or cause of action capable of constituting fraud, or of rendering the mortgage and associated facilities unenforceable due to the mechanism of bank credit creation. The legal contentions advanced were unfounded, already rejected in prior cases, and the application for leave to appeal must be refused.

Parties
Applicant: Joseph William Laws; First Respondent: Commonwealth Bank of Australia A.C.N. 123 123 124; Second Respondent: John William Leslie Murray; Third Respondent: Brian G. Stevens; Fourth Respondent: Louise McCarthy; Fifth Respondent: Peter Deith; Sixth Respondent: Geoff Bennie; Seventh Respondent: Mike Hindson
Jurisdiction
Australia
Judgment Date
17 June 1993
Procedural Posture
Application for Leave to Appeal / Application for Leave to Appeal Refused
Outcome
application for leave to appeal refused
Legal Topics
Enforceability of Bank Created Credit, Strike Out of Statement of Claim, Cost Free Book Entry Credit, Alleged Fraud by Bank Officers, Mortgage Validity, Pleading Standards
Banking Law Procedure Enforceability of Bank Created Credit Strike Out of Statement of Claim Cost Free Book Entry Credit Alleged Fraud by Bank Officers Mortgage Validity Pleading Standards

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Joseph William Laws

Applicant

Commonwealth Bank of Australia A.C.N. 123 123 124

First Respondent

John William Leslie Murray

Second Respondent

Brian G. Stevens

Third Respondent

Louise McCarthy

Fourth Respondent

Peter Deith

Fifth Respondent

Geoff Bennie

Sixth Respondent

Mike Hindson

Seventh Respondent

Procedural Posture

Application for Leave to Appeal / Application for Leave to Appeal Refused

Legal Issues

  1. 1 Whether the amended statement of claim disclosed an arguable cause of action based on the illegality of bank-created book-entry credit
  2. 2 Whether the creation of credit by banks out of nothing is illegal and renders mortgages void or unenforceable
  3. 3 Whether the pleadings disclosed fraud or a basis for relief under Trade Practices Act (1974) or Fair Trading Act (1985)

Ratio Decidendi

The applicant's amended statement of claim did not disclose any factual basis or cause of action capable of constituting fraud, or of rendering the mortgage and associated facilities unenforceable due to the mechanism of bank credit creation. The legal contentions advanced were unfounded, already rejected in prior cases, and the application for leave to appeal must be refused.

Court Disposition

application for leave to appeal refused

Orders

  • The motion for leave to appeal from the judgment made by Jenkinson J, of 18 February 1993, is refused.
  • The motion seeking expedition of the hearing of the appeal is refused.