Price v SpoorCitation:[2021] HCA 20Before:Kiefel CJ, Gageler, Gordon, Edelman, Steward JJDate:23 Jun 2021Case Number:B55/2020Read more
Clause 24 of the mortgages is not effective to prevent the mortgagors from pleading a defence under the Limitation of Actions Act 1974 (Qld), as such an agreement is unenforceable being contrary to public policy. Section 24 of the Act operates automatically to extinguish the mortgagees' title at the expiry of the...
Source-derived case information.
- Parties
- Applicant: Mortgagees; Respondent: Mortgagors
- Jurisdiction
- Australia
- Judgment Date
- 23 June 2021
- Procedural Posture
- Civil / Judgment
- Outcome
- application dismissed
- Legal Topics
- Limitation of Actions, Mortgages, Enforceability of Contractual Clauses, Public Policy
Source-derived case record
Summary, issues, holding and outcome
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Parties
Mortgagees
Applicant
Mortgagors
Respondent
Procedural Posture
Civil / Judgment
Legal Issues
- 1 Whether clause 24 of the mortgages is effective to prevent mortgagors from pleading any defence under the Limitation of Actions Act 1974 (Qld)
- 2 Whether an agreement not to plead any defence under the Act is unenforceable as contrary to public policy
- 3 Whether section 24 of the Act operates automatically to extinguish the mortgagees' title at expiry of the relevant time period
Ratio Decidendi
Clause 24 of the mortgages is not effective to prevent the mortgagors from pleading a defence under the Limitation of Actions Act 1974 (Qld), as such an agreement is unenforceable being contrary to public policy. Section 24 of the Act operates automatically to extinguish the mortgagees' title at the expiry of the relevant limitation period.
Court Disposition
application dismissed
Orders
- Mortgagees' claim for recovery of monies and possession dismissed
- No order as to costs
Full Case Text
Judgment text and source record
1 paragraphs
Judgment date 23 June 2021 Case number B55/2020 Before Kiefel CJ, Gageler, Gordon, Edelman, Steward JJ Catchwords Limitation of actions – Exclusion by agreement – Where mortgages over land secured loan – Where mortgagors failed to repay loan – Where mortgagees brought proceedings to recover monies owing and possession of land secured by mortgages – Where mortgagors contended mortgagees statute-barred from enforcing rights under mortgages as a result of expiry of relevant time period under Limitation of Actions Act 1974 (Qld) ("Act") – Where mortgagors contended mortgagees' title under mortgages extinguished by operation of s 24 of Act – Where mortgagees contended that mortgagors agreed not to plead any defence under Act by virtue of cl 24 of mortgages – Whether cl 24 effective to prevent mortgagors from pleading any defence under Act – Whether agreement not to plead any defence under Act unenforceable as contrary to public policy – Whether s 24 of Act operated automatically to extinguish mortgagees' title at expiry of relevant time period – Whether mortgagees' remedy confined to damages for mortgagors' breach of cl 24 of mortgages. Words and phrases – "action", "agreement", "agreement not to plead", "benefit", "breach of contract", "contracting out", "defeated", "defence", "defence of limitation", "expiry", "extinguishment of title", "finality of litigation", "jurisdiction of the court", "limitation period", "limitations defence", "plea", "public interest", "public policy", "reasonable business person", "remedy", "shall not be brought", "statute-barred", "statute of limitations", "statutory bar", "statutory right", "waiver". Limitation of Actions Act 1974 (Qld) – ss 10, 13, 24, 26. Files 20.docx (120.23 KB) 20.pdf (337.92 KB)