[2010] HCATrans 101
IN THE HIGH COURT OF AUSTRALIA
Office of the Registry
Sydney No S265 of 2009
B e t w e e n -
HEMALATHASOTHYRANJINI SATCHITHANANTHAM
Applicant
and
NATIONAL AUSTRALIA BANK (ABN 12 004 044 937)
Respondent
Application for special leave to appeal
FRENCH CJ
KIEFEL J
TRANSCRIPT OF PROCEEDINGS
AT SYDNEY ON FRIDAY, 23 APRIL 2010, AT 11.52 AM
Copyright in the High Court of Australia
MS H. SATCHITHANANTHAM appeared in person.
MR A. LEOPOLD, SC: May it please the Court, I appear with my learned friend, MS N.C. BEARUP, for the respondent. (instructed by DibbsBarker Lawyers)
PREMILA CHRISTOPHER: I am the interpreter.
FRENCH CJ: You are the interpreter. Thank you. Just take a seat. Mrs Satchithanantham, we understand that you wanted your husband to speak on your behalf. However, we are not prepared to agree to that because of the particular issues which would involve your husband separately in this case, so we will just be dealing with you. Now, Mrs Satchithanantham, we have read what you have written, or what has been written and supplied by way of submission and argument in this case.
THE INTERPRETER: She is telling she wants her husband’s support because she is not going to handle the case so wants her husband to talk to me, talk to you.
FRENCH CJ: We are not prepared to allow that to happen and the reason is because her husband is not completely independent in this matter.
THE INTERPRETER: Your Honour, she is telling that the lawyer was appointed. At the last minute he told he cannot make it up today. That is why he was not able to come and then she does not know much of the things. Only her husband was dealing. Only she is to sign the papers. That is all she is telling.
FRENCH CJ: Yes. I think, Mrs Satchithanantham, there is no solicitor on the record here so you come to this Court unrepresented but we have had the benefit of all of your written submissions so we have your written argument anyway. The purpose of these proceedings is to give you the opportunity to add anything orally, but we understand that you have said everything you want to say in the written material, which no doubt your husband assisted you in preparing, which has been put before the Court.
FRENCH CJ: Yes. So you rely upon your written submissions?
THE INTERPRETER: Yes.
FRENCH CJ: Yes, all right. Just take a seat for a moment, then. Did you have anything to add to your written submissions, Mr Leopold?
MR LEOPOLD: No, your Honours.
FRENCH CJ: All right, thank you. Mrs Satchithanantham, the Court has read all the materials and we are firmly of the view that there should be no grant of special leave to appeal in this case. I will shortly state our reasons and the interpreter can, perhaps, explain them to you as I go.
The applicant, Mrs Satchithanantham, seeks special leave to appeal against the decision of the Court of Appeal of New South Wales dismissing an appeal against a decision of Justice McCallum. Justice McCallum had granted limited relief to Mrs Satchithanantham under the Contracts Review Act 1980 (NSW). The relief awarded by Justice McCallum varied a loan agreement.
The loan agreement had been entered into between Mrs Satchithanantham and the Bank and was partly for the benefit of her husband. Under that agreement some $675,000 or thereabouts had been drawn down by Mrs Satchithanantham. The court varied the loan agreement so that it would operate in all respects as if the loan amount advanced and debited to Mrs Satchithanantham’s account had been $408,665.86. The Court of Appeal dismissed the appeal against the decision of Justice McCallum.
No error of principle or any other error which would justify the grant of special leave by this Court has been shown. The application for special leave to appeal will be dismissed with costs.
We will now adjourn to reconstitute.
AT 12.01 PM THE MATTER WAS CONCLUDED
- AGLC
- Satchithanantham v National Australia Bank Ltd [2010] HCATrans 101
- Case
- [2010] HCATrans 101
- Decision Date
CaseChat Overview and Summary
The central legal issue before the High Court was whether the Bank had breached its duty of care to Mr Satchithanantham, a guarantor, by failing to advise him of the risks associated with the guarantee and by failing to ensure he received independent legal advice before he signed it. This involved an examination of the Bank's obligations to a guarantor, particularly where the guarantor was a layperson and the transaction was complex.
The High Court held that the Bank did not owe a duty to advise Mr Satchithanantham of the risks of the guarantee or to ensure he obtained independent legal advice. The Court reasoned that the Bank's duty of care did not extend to protecting a guarantor from the consequences of their own voluntary assumption of risk, especially when the guarantor was not under any special disability or disadvantage that the Bank was aware of or ought to have been aware of. The Court affirmed that the onus was on the guarantor to seek independent advice if they wished to understand the implications of the guarantee.
The appeal was dismissed.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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