Introducing Banking & Finance Disputes Monthly. For 2017, we are changing the format of insights delivered to you in the Banking and Finance Dispute Resolution space - from a quarterly publication to an easier to read monthly article on a particular case or other recent development. We hope you find the new format valuable - please do pass us on any feedback in this regard.
The Commonwealth Bank of Australia trading as Bankwest, succeeded in recovering judgment for approximately $2.6m against Mr Robert Wood under a personal guarantee. In doing so, Elliott J of the Supreme Court of Victoria found that Bankwest did not comply with certain provisions of the Code of Banking Practice (Code). Nevertheless, the non-compliance with the Code was found merely to breach contractual warranties, and not conditions or intermediate terms which may have permitted rescission of the contract of guarantee. Accordingly, it was incumbent upon Mr Wood to establish a causal link between the breaches of the Code and his entering into of the guarantee so as to claim damages in diminution of his liabilities under the guarantee. He failed to do so.
Happy New Year and welcome to our 5th edition of Banking and Finance Dispute Resolution Quarterly, featuring significant decisions, developments and topics of interest for our banking and finance clients.