LE NEVE ANNE GROVES (plaintiff) v EDMUND STUART GROVES (first defendant) CITIGROUP GLOBAL MARKETS AUSTRALIA PTY LIMITED ACN 003 114 832 (second defendant) BT SECURITIES LIMITED ACN 000 720 114 (third defendant) CITIBANK, NA (fourth defendant)
FILE NO/S:
10662 of 2008
DIVISION:
Trial Division
PROCEEDING:
Trial
ORIGINATING COURT:
Supreme Court at Brisbane
DELIVERED ON:
16 October 2013
DELIVERED AT:
Brisbane
HEARING DATE:
13-17, 20-24, 27-31 May 2013, 3-7, 11-14 June 2013
JUDGE:
Martin J
ORDER:
Claim dismissed
CATCHWORDS:
EVIDENCE – BURDEN OF PROOF, PRESUMPTIONS, AND WEIGHT AND SUFFICIENCY OF EVIDENCE – GENERALLY – where the plaintiff denies that signatures on a number of documents were written by her – where the plaintiff does not plead that any particular person forged her signatures – where the defendants each adduced evidence from relevant experts – where the experts gave evidence that the signatures in question are those of the plaintiff – where the plaintiff had two other experts examine the relevant documents – where the plaintiff did not call evidence from those experts – where other possible witnesses were not called – where the principle in Jones v Dunkel may apply – whether the plaintiff has proved that the signatures on the relevant documents were not signed by her
EQUITY – GENERAL PRINCIPLES – UNCONSCIONABILITY, UNCONSCIONABLE DEALINGS AND OTHER FORMS OF EQUITABLE FRAUD – KNOWLEDGE – where the plaintiff executed guarantees for the debts of her then husband – where all parties were aware of the marriage – where the plaintiff has prior involvement with margin lending transactions –– whether the second, third or fourth defendants are excluded from the operation of the second limb of the rule in Yerkey v Jones, the ‘married woman’s equity’
CONTRACTS – CONSTRUCTION AND INTERPRETATION OF CONTRACTS – INCORPORATION INTO CONTRACT – KNOWLEDGE – where the contract is on its face an application for a loan facility – where the document is designed to enable both a borrower and guarantor to fill in his or her details and execute it – where the plaintiffs details appear on the form and the box titled ‘guarantor’ is ticked – where there is no reference on the application form to the identity of the borrower, amount being borrowed or obligations to be guaranteed – where the application form grants a power of attorney – where the plaintiff’s knowledge of surrounding circumstances is relevant – whether the application form empowered the attorney to execute the guarantee
GUARANTEE AND INDEMNITY – CONSTRUCTION AND EFFECT – GENERALLY – where the plaintiff alleges that the agreement relied upon by the second and fourth defendants is not a valid guarantee – where the agreement does not identify Mr Groves as the debtor – where the agreement identifies two separate persons, ‘you’ and ‘the guarantor’ – where extrinsic evidence is available to assist in identifying the borrower – whether the guarantee is a valid guarantee
CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES…
Grounds of appeal
[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.
[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.
[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.
Consideration
[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.
[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.
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Details
AGLC
Groves v Groves & Ors [2013] QSC 277
Case
[2013] QSC 277
Decision Date
CaseChat Overview and Summary
The case of Groves v Groves involved the plaintiff denying that her signatures appeared on several documents, including guarantees for her then husband's debts. The defendants presented expert evidence asserting that the signatures were indeed those of the plaintiff, while the plaintiff did not call expert evidence of her own nor other possible witnesses. The court had to determine whether the plaintiff proved that the signatures on the relevant documents were not hers, and whether the plaintiff was bound by the guarantees she signed, among other issues.
The court first considered the plaintiff's burden of proof regarding the authenticity of her signatures, noting that the plaintiff did not allege any specific person forged her signatures. The court applied the principle in Jones v Dunkel and found that the plaintiff had not discharged her burden of proof. The court then examined the nature of the guarantees and the plaintiff's knowledge of the margin lending transactions, ultimately concluding that the plaintiff was bound by the guarantees she signed. The court also found that the plaintiff was not excluded from the protection of the married woman's equity, but that did not absolve her from the guarantees. Additionally, the court held that the application form empowered the attorney to execute the guarantee, and the deed signed by the plaintiff's solicitor did not restrict her right to challenge the guarantee.
The court concluded that the plaintiff had not proved that the signatures were not hers and dismissed the claim in its entirety. The plaintiff's claims for compensation under the unconscionability provisions of the ASIC Act and the TPA were also dismissed, as the court found that the value of the financial services supplied or acquired was above the exclusionary cap.