Pambris v Makis [2024] NSWSC 1289

Pambris v Makis [2024] NSWSC 1289

The Court found that the 2010 mortgage was executed by Ms Makis while affected by the actual undue influence and unconscionable conduct of Mr Pambris. Ms Makis signed the mortgage based on her belief, induced by Mr Pambris, that it related solely to the Laiki Bank loan, not substantial obligations of her former husband. Mr Pambris was aware of this, and exploited Ms Makis' trust and special disadvantage, rendering the mortgage tainted by unconscionability and undue influence at the time of execution. However, later events, specifically her execution of the 2017 guarantee with independent legal advice, and subsequent consent orders, confirmed her acceptance of liability under the 2005 and...

Parties
Plaintiff: Sam Thomas Pambris; First Defendant: Andrea Makis; Second Defendant: Perpetual Trustee Company Limited (ACN 000 001 007)
Jurisdiction
Australia
Judgment Date
14 October 2024
Procedural Posture
Principal Judgment / Decision After Trial; Orders for Quantum Hearing and Further Directions
Outcome
Findings that the 2010 mortgage was affected by undue influence and unconscionable conduct; 2017 guarantee is binding; quantum not established; supplementary quantum hearing directed; parties to bring in orders to give effect to reasons; costs reserved.
Legal Topics
Unconscionable Conduct, Undue Influence, Special Disadvantage, Mortgages, Guarantees, National Consumer Credit Code, Consumer Credit, Contracts Review, Family Law Property Settlement
Equity Consumer Law Unconscionable Conduct Undue Influence Special Disadvantage Mortgages Guarantees National Consumer Credit Code +3 more

Case Brief

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Parties

Sam Thomas Pambris

Plaintiff

Andrea Makis

First Defendant

Perpetual Trustee Company Limited (ACN 000 001 007)

Second Defendant

Procedural Posture

Principal Judgment / Decision After Trial; Orders for Quantum Hearing and Further Directions

Legal Issues

  1. 1 Whether the 2010 mortgage was affected by undue influence or unconscionable conduct
  2. 2 Whether the 2017 guarantee should be set aside for those reasons
  3. 3 Whether the National Credit Code applies to the plaintiff's lending

Ratio Decidendi

The Court found that the 2010 mortgage was executed by Ms Makis while affected by the actual undue influence and unconscionable conduct of Mr Pambris. Ms Makis signed the mortgage based on her belief, induced by Mr Pambris, that it related solely to the Laiki Bank loan, not substantial obligations of her former husband. Mr Pambris was aware of this, and exploited Ms Makis' trust and special disadvantage, rendering the mortgage tainted by unconscionability and undue influence at the time of execution. However, later events, specifically her execution of the 2017 guarantee with independent legal advice, and subsequent consent orders, confirmed her acceptance of liability under the 2005 and...

Court Disposition

Findings that the 2010 mortgage was affected by undue influence and unconscionable conduct; 2017 guarantee is binding; quantum not established; supplementary quantum hearing directed; parties to bring in orders to give effect to reasons; costs reserved.

Orders

  • By 28 October 2024, parties to bring in short minutes of order to give effect to these reasons.
  • Proceedings listed for directions in relation to quantum hearing and other matters on 5 November 2024 at 9:30am or as otherwise arranged.