Hurworth Nominees Pty Limited v ANZ Banking Group Limited

Hurworth Nominees Pty Limited, the appellant, brought an action against ANZ Banking Group Limited, the respondent, seeking rectification of a Deed of Release and Settlement entered into after the successful mediation of farm debt under the Farm Debt Mediation Act 1994 (Qld). The primary dispute centred on whether the plaintiffs could initiate proceedings for the rectification of the Deed following the mediation process, and the extent to which certain sections of the Act precluded such actions. The matter was heard and determined in the Supreme Court of Queensland.

The central legal issues that the court had to resolve included whether sections 15 and 16 of the Farm Debt Mediation Act 1994 precluded the plaintiffs from bringing the rectification action and, if so, the precise meaning of "lawful excuse" in section 16(e) of the Act. The court was required to interpret the statutory provisions and determine the balance between the policy objectives of the Act and the equitable remedy of rectification.

The court found that while section 15 of the Act excluded certain evidence, it did not categorically prevent the plaintiffs from pursuing their claim for rectification. Section 16, which prohibited the disclosure of information obtained during the mediation process, was also considered, but the court concluded that a "lawful excuse" existed for the disclosure in this instance. The court held that the plaintiffs' right to seek rectification under equity was not entirely overridden by the statutory provisions. Consequently, the plaintiffs were permitted to proceed with their rectification claim, subject to the conditions set by the court.

The final orders of the court allowed the plaintiffs to proceed with their action for rectification, subject to specific conditions regarding the use and disclosure of information obtained during the mediation process. The court emphasised the importance of balancing the policy behind the Farm Debt Mediation Act with the equitable principles that support the remedy of rectification.