Bank of Queensland Limited v Wright

Bank of Queensland Limited commenced proceedings against two defendants, the first and second, seeking a declaration of debt, interest and costs. The bank alleged that the defendants had guaranteed the indebtedness of a third party, who had failed to repay the debt. The case was heard in the Supreme Court of Queensland, which exercised its discretion to hear the matter under the Uniform Civil Procedure Rules. The primary issue before the court was whether summary judgment should be granted in favour of the bank against the defendants, and if not, whether the defences raised by the defendants warranted the case to proceed to trial.

The court considered whether the bank's case against the defendants was purely contractual, as the bank argued, or if the Code of Banking Practice could be invoked as a defence. The court found that the bank's claim was indeed founded in contract, and the defendants' defences, which relied on the Code of Banking Practice, did not meet the threshold required to avoid summary judgment. The court concluded that the bank was entitled to judgment as a matter of law against the first defendant, but the second defendant's defences were sufficient to proceed to trial.

Consequently, judgment was entered in favour of the bank against the first defendant, with the amount of $5,581,240.58, and an order was made for the first defendant to pay the bank's costs. The bank's application for summary judgment against the second defendant was dismissed. The court imposed several conditions on the second defendant to proceed with the defence, including the payment of a sum into court, the filing of an amended defence and counterclaim, and the exchange of evidence summaries and expert reports. The case was listed for trial in the Supreme Court at Brisbane for five days commencing on 25 August 2014, with costs reserved.