McFarland v Common Australia Pty Ltd

The case of McFarland v Common Australia Pty Ltd involved a dispute between the plaintiffs, Mervyn Christopher McFarland and Wendy Ann Miller, and the defendant, Common Australia Pty Ltd. The plaintiffs had purchased rural land from the defendant and had taken a loan of $100,000 secured by a mortgage. After defaulting on their repayments, the defendant repossessed the land and sought to sell it. The plaintiffs brought an action claiming the defendant had converted their possessions, and the defendant cross-claimed for losses due to the plaintiffs' default and for trespass to its sheep.

The court had to decide if the plaintiffs had a statutory claim under section 111A(4) of the Conveyancing Act 1919 and whether the plaintiffs' mortgage was subject to the National Credit Code. The court also had to determine the nature of the credit contract, whether it was for the plaintiffs' personal, domestic or household purposes, and if the contract was incidental to any other business of the defendant. Additionally, the court examined whether the defendant had converted the plaintiffs' possessions and if the defendant's retention of the chattels constituted an adverse claim against the plaintiffs' rights. The court also considered the defendant's cross-claims for losses and for trespass to its sheep.

The court found that the plaintiffs did not have a statutory claim under the Conveyancing Act or the National Credit Code. The court determined that the credit contract was not for the plaintiffs' personal, domestic or household purposes and was not incidental to the defendant's business. The court also found that the defendant did not convert the plaintiffs' possessions as there was no manifestation of an intention to keep the chattels adversely against the plaintiffs' rights. Regarding the defendant's cross-claims, the court awarded damages for the plaintiffs' default and for trespass to the defendant's sheep.

The court ordered judgment in favour of the defendant on the plaintiffs' claim. The court also ordered that the defendant was entitled to $71,732.38 from Mervyn Christopher McFarland and $13,406.38 from Wendy Ann Miller. The court found that the plaintiffs were liable for the losses sustained by the defendant due to their default under the mortgage and for the trespass to the defendant's sheep.