Fast Fix Loans Pty Limited v Mladenko Samardzic

Fast Fix Loans Pty Limited has sought an order for possession of residential property after the borrower, Mladenko Samardzic, defaulted on repayments. Samardzic's parents had previously mortgaged their home to secure loans by Samardzic and his company. The parents now seek to set aside the mortgage on the basis of undue influence and have made a cross-claim under the Contracts Review Act 1980. The court was required to determine whether the mortgage was the result of undue influence and, if so, whether the court should exercise its discretion to set aside the mortgage under the Contracts Review Act.

The court examined the nature of the transaction, whether it was improvident from the parents' point of view, and whether the mortgagee failed to make any inquiries as to the parents' financial circumstances. The court found that the parents had signed the mortgage documents without independent legal advice, but that a solicitor had explained the contents of the documents to them. The court held that the transaction was improvident from the parents' point of view and that the mortgagee had not made any inquiries as to the parents' financial circumstances. The court held that the explanation by the solicitor did not negate the effect of the improvidence of the transaction.

The court held that the mortgage was unjust as it affected the parents and that the court should exercise its discretion to set aside the mortgage under the Contracts Review Act. The court ordered that the mortgage be set aside and that the parents be compensated for their losses. The court also ordered that the parents be released from their liability under the mortgage.