Stanley Stergiou and EKATERINE Stergiou v Citibank Savings Limited

Stanley Stergiou and Ekaterine Stergiou (the appellants) appealed to the Full Court of the Supreme Court of Western Australia against orders made by Connolly J. The dispute concerned the appellants' challenge to the validity of a mortgage over their property, which they alleged was procured by fraud and misrepresentation by Citibank Savings Limited (the respondent). The appellants sought to have the mortgage set aside.

The central legal issue before the Full Court was whether the appellants had established a sufficient arguable case of fraud or misrepresentation to warrant setting aside the mortgage and preventing its enforcement by the respondent. This involved considering the nature of the allegations made by the appellants and whether they met the threshold for equitable intervention, particularly in light of the respondent's position as a mortgagee.

The Full Court found that the appellants had failed to provide sufficient evidence to support their claims of fraud or misrepresentation. The Court reasoned that mere allegations, without supporting material, were insufficient to discharge the onus on the appellants to demonstrate a serious question to be tried. Consequently, the Court concluded that the equitable relief sought by the appellants was not warranted.

Accordingly, the Full Court ordered that the orders of Connolly J be set aside and that the proceedings be dismissed. The notice of motion filed by the appellants on 11 May 2005 was also dismissed.