LUNDIE v Rowena Nominees Pty Ltd (Receiver and Manager Appointed) (in Liq)

The appeal was brought by the plaintiff, Lundie, against the decision of the Master of the Supreme Court who declined to grant summary judgment against the respondent, Rowena Nominees Pty Ltd. The dispute arose from a statement of claim which sought, among other things, to have certain loan agreements declared void. The respondent, who was in liquidation, was represented by a receiver and manager appointed. The Full Court of the Supreme Court of New South Wales heard the appeal.

The primary legal issues were whether the Master had erred in not awarding summary judgment to the plaintiff and whether the respondent had entered the loan agreements as a principal or as an agent for an unidentified lender. The court needed to determine the validity of the loan agreements given that they were made pursuant to a non-existent power of attorney. Furthermore, the court examined whether the identity of the principal lender was significant for the validity of the agreements. The court considered whether the respondent was entitled to sue on the agreements, regardless of whether they were construed as deeds.

The court found that the Master had not erred in declining to grant summary judgment because the statement of claim disclosed a triable issue. The court concluded that it was arguable that the respondent had entered the loan agreements as an agent for an unidentified lender. The court held that the agreements were not necessarily invalid because the respondent had entered them as an agent for a non-existent principal. The identity of the lender was not significant to the other contracting party, and the respondent had an arguable entitlement to sue on the agreements, whether or not they were construed as deeds. The appeal was dismissed.

The court did not make any orders in relation to the appeal. The case was remitted to the Master to proceed with the trial of the statement of claim.