Spina v Permanent Custodians Ltd

[2009] NSWCA 206

New South Wales

Court of Appeal

CITATION:	Spina v Permanent Custodians Limited [2009] NSWCA 206
HEARING DATE(S):	20 May 2009
JUDGMENT DATE:	22 July 2009
JUDGMENT OF:	Tobias JA at [1]; Campbell JA at [2]; Young JA at [3]
DECISION:	(1) Appeal allowed with costs; (2) Orders below set aside; (3) Complex order made in lieu varying loan agreement and supporting mortgage; (4) Order that defendant pay 85% of plaintiff's costs below.
CATCHWORDS:	CONTRACTS - Contracts Review Act 1980- that a loan agreement and supporting mortgage should be set aside- whether transactions were unjust when entered into and whether the court should grant relief- elderly mother and son entered into loan agreement with respondent- securing mortgage over mother's house- lending guidelines- independent legal advice. EQUITY- unconscionability- elder law- whether transaction ought to be set aside.
LEGISLATION CITED:	Civil Procedure Act 2005, s 101 Contracts Review Act 1980, ss 7, 9, 19 Powers of Attorney Act 2003
CATEGORY:	Principal judgment
CASES CITED:	Abbott v UDC Finance Ltd [1992] 1 NZLR 405 (CA) Accom Finance Pty Ltd v Mars Pty Ltd (2007) 13 BPR 24,729 Ardern v Bank of New South Wales [1956] VLR 569 Barclays Bank plc v O'Brien [1994] 1 AC 180 Barclays Bank plc v Thomson [1997] 4 All ER 816 Beneficial Finance Corporation Ltd v Karavas (1991) 23 NSWLR 256 Bridgewater v Leahy (1998) 194 CLR 457 Elkofairi v Permanent Trustee Co Ltd (2002) 11 BPR 20,841 Garcia v National Australia Bank Ltd (1998) 194 CLR 395 Kleinwort Benson Australia Ltd v Armitage (Cole J, 26 April 1989, unreported) Kowalczuk v Accom Finance Pty Ltd (2008) 252 ALR 55 Longmate v Ledger (1860) 2 Giff 157; 66 ER 67 National Australia Bank v Hall (1993) NSW Conv R 55-684 National Australia Finance Ltd v Fahey [1990] 2 NZLR 482 Pasternacki v Correy [2001] ANZ ConvR 240 Perpetual Trustee Company Limited v Khoshaba [2006] NSWCA 41 Ribchenkov v Suncorp-Metway Ltd (2000) 175 ALR 650 Riz v Perpetual Trustee Australia Ltd (2008) NSW Conv R 56-198 Vakele Pty Ltd v Assender (1989) 4 BPR 9591 Vella v Permanent Mortgages Pty Ltd (2008) 13 BPR 25,343
PARTIES:	Joe Spina (Appellant) Permanent Custodians Limited (Respondent)
FILE NUMBER(S):	CA 40313/08
COUNSEL:	A Leopold SC and J Clifton (Appellant) S A Gregory (Respondent)
SOLICITORS:	Grogan & Webb Solicitors (Appellant) Hicksons Lawyers (Respondent)
LOWER COURT JURISDICTION:	Supreme Court - Equity Division
LOWER COURT FILE NUMBER(S):	SC 2393/06
LOWER COURT JUDICIAL OFFICER:	Hammerschlag J
LOWER COURT DATE OF DECISION:	30 June 2008
LOWER COURT MEDIUM NEUTRAL CITATION:	Angelina Spina v Permanent Custodians Ltd [2008] NSWSC 561

CA 40313/08
SC 2393/06

TOBIAS JA
CAMPBELL JA
YOUNG JA

Wednesday 22 July 2009

SPINA v PERMANENT CUSTODIANS LIMITED

Headnote

[This headnote does not form part of the judgment]

On 24 October 2003, Angelina Spina (who is now deceased) and her son, Michael (who is also, now, deceased), on the one part, and Permanent Custodians, the respondent, on the other part, entered into a Loan Agreement. Under…