St George Bank - a Division of Westpac Banking Corporation v Zhang (No 3)

The case between St George Bank, a division of Westpac Banking Corporation, and Zhang was heard in the Federal Circuit Court. The dispute centred around the enforcement of mortgage obligations, specifically the costs associated with enforcing those obligations. The bank sought an order for costs incurred in enforcing the mortgage against Zhang. Zhang contested the claim, arguing that the bank had failed to mitigate the costs of enforcement.

The court had to determine whether the bank was entitled to recover the full amount of the costs claimed, and if Zhang had any obligation to contribute towards those costs. The legal issues also included whether the bank had acted reasonably in enforcing the mortgage and whether Zhang had any defence against the enforcement proceedings.

The court held that the bank was entitled to recover the costs of enforcement, but only to the extent that they were reasonable and necessary. The court found that the bank had acted reasonably in enforcing the mortgage, and that Zhang had no defence against the enforcement proceedings. However, the court also found that Zhang was not liable for the full amount of the costs claimed by the bank, as some of the costs were not necessary or reasonable. The court ordered Zhang to pay a reduced amount of the enforcement costs to the bank.

The final orders of the court included an order for Zhang to pay the bank a specified amount towards the costs of enforcement, and a declaration that Zhang was not liable for the balance of the costs claimed by the bank. The court also ordered that the bank pay its own costs of the proceedings.