Davies v Commonwealth Bank of Australia

The appeal concerned proceedings in the Supreme Court of South Australia where Mr Davies sought to bring claims against the Commonwealth Bank of Australia. These claims related to the Bank's conduct as mortgagee in possession and its exercise of the power of sale over a property owned by Mr Davies and his wife. The Bank had previously obtained possession of the property and sold it, resulting in a shortfall on the mortgage debt. Mr Davies alleged the Bank had breached its duties, engaged in misconduct, and sold the property for significantly less than its true value.

The central legal issues before the court were whether Mr Davies' claims were valid and could proceed, or if they were barred by a prior settlement. Specifically, the court had to determine if a settlement deed, entered into by Mr Davies, his wife, and the Bank, effectively released the Bank from the claims Mr Davies was now attempting to pursue. The court also considered whether the Bank was entitled to summary judgment on the basis that Mr Davies' claims had no reasonable prospect of success.

The court reasoned that the District Court proceedings, which raised substantially similar allegations to those in the Supreme Court, had been resolved by a settlement deed. This deed contained mutual releases, including a release of all claims relating to the District Court proceedings. The primary judge found that Mr Davies had been represented by counsel during the mediation and at the time of signing the settlement deed, and there was no evidence of unlawful or improper conduct by legal representatives or the Bank. Consequently, the settlement deed stood as a bar to Mr Davies' current claims, as he had not demonstrated any grounds for setting it aside.

The appeal was dismissed. The court concluded that the settlement deed was a valid and binding agreement that precluded Mr Davies from re-litigating the issues covered by the release. Therefore, his claims in the Supreme Court proceedings had no reasonable prospect of success, and summary judgment in favour of the Bank was upheld.