State Bank of New South Wales Ltd v Currabubula Holdings Pty Ltd

The dispute in *State Bank of New South Wales Ltd v Currabubula Holdings Pty Ltd* concerned a bank's actions in freezing a customer's current accounts and the subsequent communication of the customer's financial status. The case was heard on appeal.

The primary legal issues before the court were whether the bank had breached an implied term of the banker-customer contract by varying the customary mode of dealing without reasonable notice, and whether the bank had defamed the customer by including "in liq" at the end of the balance column on bank statements, thereby implying the customer or its account was in liquidation or reduction. The court also considered the question of publication in relation to the alleged defamation.

The court found that there was no implied term that the bank would not vary the customary mode of dealing without reasonable notice, particularly as the customer's case at trial had not been founded on such a term. Regarding the defamation claim, the court determined that the inclusion of "in liq" on the bank statements did not necessarily convey that the customer company was in liquidation. Furthermore, the court considered the limited audience of the statements within the customer's company and concluded that publication to the customer itself, rather than to third parties, was the relevant consideration.

The appeal was allowed, and the previous orders were set aside. Judgment was entered for the defendant (the bank), and the respondents were ordered to pay the appellant's costs of the trial and the appeal.