Lormier v State Bank of New South Wales

This matter concerns an application for special leave to appeal from a judgment of the Court of Appeal of New South Wales. The applicant, Patrick William Gibb Lorimer, a farmer, sought special leave to appeal against a decision concerning his dispute with the respondent, the State Bank of New South Wales. The case arises in the context of numerous similar disputes between farmers and financial institutions, where farmers have alleged a belief that their banks would support them during difficult financial periods.

The legal issues before the High Court revolved around the nature of the relationship between a bank and its farmer customers, particularly in circumstances of financial distress. The applicant's counsel argued that the case presented an opportunity for the Court to analyse the principles governing this relationship, potentially for the first time. Furthermore, the application touched upon the developing area of law concerning estoppel, including the distinction between common law and equitable estoppel, which had been the subject of recent High Court decisions.

The applicant's argument for special leave was predicated on the submission that the case involved a real question of law, despite the Chief Justice's observation that such matters naturally turn on their own facts. Counsel highlighted that the applicant was in significant financial difficulty by April 1985, owing approximately $290,000, with $60,000 of that debt owed to the respondent bank, which held a mortgage over his property. The applicant's financial predicament was attributed to floods in 1984 and 1985, rather than a lack of financial judgment. The applicant sought to refer to facts leading up to critical decisions made around 17 July 1985, without challenging the trial judge's findings.