Re: CHRISTOPHER ROBIN FISHER and FAY ANNETTE FISHER
And: WESTPAC BANKING CORPORATION; TOM MACDONALD; PATRICK MAHER; BRIAN A.
GREGORY; GREG J. MUNRO; BRIAN AIREY and AUSTRALIAN GUARANTEE CORPORATION LTD
No. WA G81 of 1992 FED No. 624
Practice and Procedure
COURT
IN THE FEDERAL COURT OF AUSTRALIA
WESTERN AUSTRALIA DISTRICT REGISTRY
GENERAL DIVISION
French J.(1)
CATCHWORDS
Practice and Procedure - pleadings - statement of claim - whether reasonable cause of action disclosed - claim upon Bank, finance company and employees - allegation of unenforceable loan created by book-entry credit not supported by assets in currency or real wealth - conspiracy - Magna Carta - Biblical prohibition on usury - principles on strike out - no cause of action disclosed - difficulties arising from cost and lack of access to legal services.
Transfer of Land Act (WA) 1893 s.145
Contracts Review Act 1980 NSW
The Industrial Arbitration Act 1940
Industrial Relations Act 1991 (NSW)
Bullen and Leake and Jacobs - Precedents of Pleadings 13th Ed. (1990)
General Steel Industries Inc. v. Commissioner of Railways (NSW) (1964) 112 CLR 125
Turner v. The Bulletin Newspaper Co. Pty Ltd (1974) 131 CLR 69
Bride v. Stewart (unrep Fed Ct 18/1/90 French J.)
HEARING
PERTH
#DATE 18:8:1992
The Applicants appeared in person.
Counsel for the Respondent: Mr A. McCarthy
Solicitors for the Respondent: Parker and Parker
ORDER
THE COURT ORDERS THAT:
1. The statement of claim is struck out.
2. The applicants to pay the respondents' costs of the motion.
Note: Settlement and entry of Orders is dealt with in Order 36 of the Federal Court Rules.
JUDGE1
Christopher Robin Fisher and Fay Annette Fisher of Hopetoun in Western Australia are dissatisfied customers of the Westpac Banking Corporation ("the Bank") and the Australian Guarantee Corporation Ltd ("AGC") who have commenced proceedings against the Bank and AGC and certain of the Bank's officers arising out of borrowings and related financial dealings which have taken place since July 1984. Their principal claim is based in part upon allegations that the Bank, in purporting to make loans to them, effected book entries which did not represent the commitment of "legal tender". This practice which they call cost-free book-entry credit creation is said to be, among other things, misleading or deceptive and in the alternative to give rise to an entitlement on their part to offset against their obligation to the Bank their own credit created by filling out an appropriate certificate. A criminal conspiracy by all the respondents to strip them of their assets is also alleged. As particularised, this involves the further allegations that the Bank promised credit and after obtaining security on the strength of such promise withheld the credit and forced the sale of their land and subsequently of a supermarket owned by a company operated by Mrs Fisher and another person. Certain mortgages executed in favour of the Bank and AGC are said to have been not properly executed and to be unenforceable for…
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- Case
- [1992] FCA 624
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the statement of claim disclosed a reasonable cause of action. This involved examining the allegations of conspiracy, the nature of the loan and its enforceability, and the relevance of Magna Carta and Biblical prohibitions on usury. The court needed to assess whether these claims were legally plausible and whether they met the threshold for proceeding to a trial. Additionally, the court considered the principles on striking out pleadings, ensuring that the claims were not frivolous or vexatious, and that they had some basis in law.
In its reasoning, the court determined that the statement of claim did not disclose a reasonable cause of action. The allegations regarding the unenforceable loan created by book-entry credit were not supported by assets in currency or real wealth, and the conspiracy claims were vague and unsubstantiated. The references to Magna Carta and Biblical prohibitions on usury were deemed irrelevant and did not contribute to establishing a cause of action. The court held that the claims were frivolous and vexatious, lacking any plausible basis in law or fact. Consequently, the statement of claim was struck out, and the applicants were ordered to pay the respondents' costs of the motion.
The court's final orders were that the statement of claim be struck out and that the applicants pay the respondents' costs of the motion. These orders were made in accordance with Order 36 of the Federal Court Rules, which governs the settlement and entry of orders in such proceedings. The decision underscores the importance of ensuring that claims brought before the court are legally sound and supported by evidence, particularly in cases where access to legal services may be limited.
Orders
Orders of the court
THE COURT ORDERS THAT:
1. The statement of claim is struck out.
2. The applicants to pay the respondents' costs of the motion.
Note: Settlement and entry of Orders is dealt with in Order 36 of the Federal Court Rules.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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