Healey v Commonwealth Bank of Australia

In *Healey v Commonwealth Bank of Australia* [1998] NSWCA 103, the New South Wales Court of Appeal considered an appeal concerning the enforceability of a guarantee. The appellant, Mr. Healey, sought to set aside a guarantee he had provided to the Commonwealth Bank of Australia in favour of his company, Healey Holdings Pty Ltd. The central dispute revolved around whether the Bank had engaged in misleading or deceptive conduct in contravention of the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)) during the lead-up to Mr. Healey signing the guarantee.

The primary legal issue before the Court of Appeal was whether the Bank's conduct in relation to the provision of financial advice and information to Mr. Healey constituted misleading or deceptive conduct. Specifically, the Court had to determine if the Bank had made representations that were false or likely to mislead Mr. Healey about the nature and extent of his liability under the guarantee, and if such conduct caused Mr. Healey loss or damage.

The Court of Appeal found that the Bank had not engaged in misleading or deceptive conduct. It reasoned that the Bank had provided Mr. Healey with sufficient information and warnings regarding the nature of the guarantee and his potential liability. The Court emphasised that Mr. Healey was a sophisticated businessman who had received independent legal advice. Therefore, the Bank's conduct, viewed objectively, was not misleading or deceptive, and Mr. Healey had not been induced to enter into the guarantee by any misrepresentation on the part of the Bank. The appeal was dismissed.