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Court Reduces Amount Guaranteed by Volunteer Wife
Supreme Court of Queensland reduces amount guaranteed by a volunteer wife even though she obtained independent legal advice.
In Dowdle v Pay Now For Business Pty Ltd & Anor [2012] QSC 272 the Supreme Court of Queensland considered the issue of misleading and deceptive conduct where a wife sought to have a guarantee and mortgage set aside even though she had received legal advice prior to executing a mortgage and guarantee to secure monies advanced to her husband.
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Finance Brokers are the Agent of the Borrower Not the Lender
Supreme Court confirms that finance brokers are the agent of the borrower not the lender.
In Secure Funding Pty Ltd v Moon & Anor Justice Lyons of the Supreme Court of Queensland upheld the general principle that a finance broker is not the agent of the lender even if the lender pays a fee to the broker.
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High Court Clarifies the Operation of the Penalties Doctrine
High Court clarifies the operation of the penalties doctrine in Australia.
In Andrews v Australia and New Zealand Banking Group Limited [2012] HCA 30 the High Court of Australia held that a fee could be characterised as a penalty even though it was payable without there being any breach of agreement.
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Letter of Offer Dispute: Application Fee If Borrower Withdraws
Letter of Offer Dispute – charging an Application Fee when the borrower withdraws.
The Queensland Court of Appeal decision of Memery v Trilogy Funds Management Limited [2012] QCA 160 provides a useful analysis of when a lender may charge an application fee under a letter of offer agreement even if the loan does not proceed.
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Guarantor Liable for Costs Incurred by Lender
Guarantor liable for costs incurred by lender after full discharge of facility.
In the matter of Balanced Securities Limited v David Thomas [2010] QDC 337, Elliott May was successful in obtaining judgment for its lender client against a guarantor for the costs incurred in defending proceedings brought by a borrower after the loan had been repaid in full.
