Doggett v Commonwealth Bank of Australia

In the case of Doggett v Commonwealth Bank of Australia, the dispute revolved around whether the Bank had breached its contractual obligations by failing to exercise the requisite care and skill in assessing the applicant's ability to repay a loan. The matter was heard in the Federal Court of Australia. The plaintiff, Doggett, sought damages for the Bank's alleged failure to adhere to the Code of Banking Practice in its assessment of the loan application.

The central legal issues before the Court were whether the Code of Banking Practice had been incorporated into the guarantees provided by the plaintiff and whether this incorporation imposed a contractual obligation on the Bank to assess the applicant's ability to repay the loan comprehensively, including any potential financial support beyond business income. The Court also had to determine whether the Bank's alleged breach of these obligations caused the plaintiff's loss and damage.

The Court found that the Code of Banking Practice was not incorporated into the guarantees, and thus, the Bank did not owe a contractual obligation to assess the applicant's ability to repay the loan comprehensively. Consequently, the Bank's alleged failure to consider other potential financial support did not breach any contractual duty. Additionally, the Court dismissed the plaintiff's claims regarding the compromise settlement and the application for leave to amend the notice of appeal, finding no economic duress or substantial prejudicial alteration of the guarantors' rights.

In summary, the appeal was dismissed, and the plaintiff's claims against the Bank were rejected.