Australia and New Zealand Banking Group Limited v Jeff Manny (No 3)

The case before the court was between Australia and New Zealand Banking Group Limited and Jeff Manny. The dispute arose from a failed attempt to replead a claim after the original statement of claim was deemed insufficient. Manny, who was representing himself, was given leave to amend his claim but subsequently attempted to join a company in liquidation without its consent. The bank argued that the amended statement of claim did not disclose a valid cause of action. The court was tasked with determining whether Manny's amended pleadings were adequate and whether the receiver, who was exercising the power of sale, owed a common law duty of care to the guarantor.

The court held that the amended statement of claim still failed to disclose a cause of action, and therefore, the attempt to join the company in liquidation was improper. The court further found that the receiver did not owe a common law duty of care to the guarantor. The court relied on established principles that a receiver appointed by a lender does not owe a duty of care to the guarantor unless there is a specific relationship that creates such a duty. Since no such relationship was identified, the court dismissed the claim.

The court dismissed Manny's application to replead and to join the company in liquidation, ordering him to pay the bank's costs. This decision underscores the importance of ensuring that pleadings are properly formulated and that parties do not attempt to join additional defendants without their consent. The ruling also reinforces the limited scope of a receiver's duty of care in the context of commercial transactions.