Metro Finance Pty Limited v Harrison

The dispute in Metro Finance Pty Limited v Harrison was between a finance company, Metro Finance Pty Limited, and a guarantor, Harrison. The finance company sought to recover moneys due under a loan agreement, and the guarantor defended the action on the basis of alleged wrongful possession of the borrower's equipment and a promise made by the creditor's agent not to sue. The matter came before the court on applications for summary dismissal or striking out the defence. The primary legal issue before the court was whether the guarantor had an arguable defence of set-off based on the alleged wrongful possession of the borrower's equipment and the alleged promise made by the creditor's agent. The court considered the evidence and submissions from both parties and held that there was an arguable defence in relation to the alleged wrongful possession of the borrower's equipment. However, the court found that the alleged promise made by the creditor's agent was not an arguable defence. The court ultimately dismissed the application for summary dismissal and allowed the application for striking out certain parts of the defence. The final orders of the court are detailed in paragraph 71.