Spoor v Price

In the case of Spoor v Price, the dispute centered on the validity of a clause within two mortgages executed by the parties in 1998 to secure a loan of $320,000. The appellants initiated proceedings in 2017 to recover the outstanding debt and possession of the land secured by the mortgages. The respondents countered by asserting that the appellants' claim was barred by sections 10, 13, and 26 of the Limitation of Actions Act 1974 (Qld). The appellants argued that clause 24 of the mortgages, which stated that statutory provisions curtailing the rights and remedies of the mortgagee would not apply, prevented the respondents from raising a limitations defence. The primary judge ruled against the respondents, finding clause 24 ambiguous and concluding that the mortgagee's title to the land was extinguished before the proceedings were initiated.

The central legal issues before the court were whether an agreement to contract out of the Limitation of Actions Act could be valid and enforceable, and if such an agreement could itself be subject to the act's limitations. The court had to determine whether clause 24 effectively barred the respondents from asserting a limitations defence and whether the primary judge's findings were correct. Specifically, the court needed to address whether clause 24 was ambiguous and if it correctly prevented the pleading of a limitations defence.

The court concluded that the primary judge had erred in his interpretation of the Limitation of Actions Act. It found that clause 24 was not ambiguous and that it successfully contracted out of the operation of the act. The court held that there was no public policy reason to render such an agreement void and unenforceable. The primary judge's conclusion that the mortgagee's title was extinguished before the proceedings began was also incorrect. The court allowed the appeal and set aside the orders made on 12 and 15 April 2019. It directed the parties to submit written arguments regarding the form of further orders and costs within a specified timeframe.