Solomon-Innes & Innes v Carter-Lannstrom & Carter-Lannstrom

Solomon-Innes & Innes v Carter-Lannstrom & Carter-Lannstrom is a case in which the applicants sought an interlocutory injunction to restrain the respondents from exercising or attempting to exercise the power of sale pursuant to a mortgage. The applicants seek to set aside a mortgage and various loan agreements entered into by the parties on the grounds of unconscionability. The case was heard in the Supreme Court of Queensland.

The central legal issue in the case was whether an interlocutory injunction should be granted to the applicants to restrain the respondents from exercising or attempting to exercise the power of sale pursuant to the mortgage. The court had to consider the principles of equity and the availability of equitable remedies in this context.

The court found that the applicants had established a prima facie case for the relief sought. The applicants had demonstrated that there was a serious question to be tried in the substantive proceedings, and that the balance of convenience favoured the grant of the injunction. The court was satisfied that the applicants had established that there was a real prospect of success on the merits, and that the potential harm to the applicants if the injunction was not granted outweighed any potential harm to the respondents. The court also considered the principle that equity will not suffer a wrong to be without a remedy. The court granted the injunction sought by the applicants, subject to the applicants paying a commercial rate of interest on the balance outstanding pursuant to the Facility Agreement.

The final orders of the court were that the injunction sought by the applicants is granted, the applicants pay a commercial rate of interest on the balance outstanding pursuant to the Facility Agreement, and that the court would hear counsel as to the rate of interest to be paid, the form of the Orders and as to Costs.