Ozden & Anor v Commonwealth Bank of Australia

Ozden & Anor v Commonwealth Bank of Australia concerned a dispute between the applicants, Mr and Mrs Ozden, and the respondent, Commonwealth Bank of Australia. The applicants sought to set aside a mortgage over their property, alleging that the mortgage was procured by misleading and deceptive conduct and that the Bank had breached its duty of care. The matter came before the High Court of Australia on appeal from the Full Court of the Federal Court of Australia.

The primary legal issues before the High Court were whether the Bank had engaged in misleading or deceptive conduct in contravention of section 52 of the Trade Practices Act 1974 (Cth) (now section 18 of the Australian Consumer Law) and whether the Bank had breached its duty of care to the applicants. Specifically, the court considered whether the Bank had a duty to advise the applicants about the suitability of the loan product and whether the Bank had adequately warned them of the risks associated with the loan.

The High Court, comprising Crennan and Kiefel JJ, found that the Bank had not engaged in misleading or deceptive conduct. Their Honours held that the Bank's conduct in providing loan documents and information did not amount to a misrepresentation or a failure to disclose material facts that would mislead a reasonable consumer. Furthermore, the court determined that the Bank did not owe a duty of care to advise the applicants on the suitability of the loan product or to warn them of the risks, as the applicants were sophisticated borrowers who had obtained independent legal and financial advice. The Bank's obligations were confined to ensuring the loan documentation was accurate and that the applicants understood the terms of the loan.

The appeal was dismissed.