Walsh v Iker

Case [2019] QDC 225


DISTRICT COURT OF QUEENSLAND

CITATION:

Walsh & Anor v Iker & Ors [2019] QDC 225

PARTIES:

MICHAEL ROBERT WALSH (First Plaintiff) and

SUSAN WALSH (Second Plaintiff)

V

EDWARD ALEXANDER IKER (First Defendant) and

JO-ANNE IKER (Second Defendant) and

EUNEEKE CATTLE COMPANY PTY LTD

ACN 112 009 097 (Third Defendant)

FILE NO/S:

D29/17

DIVISION:

Civil

PROCEEDING:

Application

ORIGINATING COURT:

District Court at Mackay

DELIVERED ON:

12 November 2019

DELIVERED AT:

Brisbane

HEARING DATE:

11 October 2019

JUDGE:

Farr SC DCJ

ORDER:

The application is dismissed

CATCHWORDS:

CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – FORMATION OF CONTRACTUAL RELATIONS – CONTRACT IMPLIED FROM CONDUCT OF PARTIES – where the Third Defendant was joined to the proceedings by consent – where the identity of the recipient of the loan is contested – where the terms of repayment of the principal loan amount and accrued interest are contested – where there is no direct evidence of any oral contract – whether Summary Judgment can be made against the Third Defendant.

CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – FORMATION OF CONTRACTUAL RELATIONS – CONTRACT IMPLIED FROM CONDUCT OF PARTIES – where the Plaintiffs seek an order striking out the whole of the Third Defendant’s Amended Defence pursuant to Rule 171 of the UCPR – where the Third Defendant’s Amended Defence application is based on the assertion that in the absence of agreement as to the time at which a loan would be repaid, at law a loan is payable on demand – whether the Amended Defence discloses a reasonable defence.

CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – FORMATION OF CONTRACTUAL RELATIONS – CONTRACT IMPLIED FROM CONDUCT OF PARTIES – where the Plaintiffs seek further, or in the alternative, to strike out the set-off pleaded in the Further Amended Defence of the First and Second Defendants – where the Plaintiff concedes that the Second Defendant may have availability of a set-off against the Second Defendant – whether it would be appropriate to order the strike-out of the set-off raised in the defence of the Third Defendant.

COUNSEL:

M.T de Waard for the Applicants/Plaintiffs

S.B Whitten for the Defendants/Respondents

SOLICITORS:

Macrossan & Amiet Solicitors for the Applicants/Plaintiffs

Kelly Legal for the Defendants/Respondents

Introduction

  1. This is the Plaintiffs interlocutory application seeking:

(a) summary judgment pursuant to Rule 292 of the Uniform Civil Procedure Rules (Qld) 1999 (Qld) (“UCPR”) as against the Third Defendant;

(b) further or in the alternative, pursuant to Rule 171 of the UCPR, that either the whole of the Amended Defence of the Third Defendant, or just paragraphs 16 – 25 be struck out;

(c) further or in the alternative, pursuant to Rule 171 of the UCPR, the set-off pleaded in the further Amended Defence of the First and Second Defendants be struck out; and

(d)        costs against the First, Second and Third Defendants.

  1. The Defendants submit that the Plaintiffs application should be dismissed with costs.

Background

  1. The First and Second Plaintiffs (the Plaintiffs) filed a Claim and Statement of Claim against the First and Second Defendants (the Defendants)…

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AGLC
Walsh v Iker [2019] QDC 225
Case
[2019] QDC 225
Decision Date

CaseChat Overview and Summary

The case of Walsh v Iker involves a complex dispute centred around the formation of a contractual relationship, particularly the terms and conditions of a loan, as well as the repayment obligations and the possibility of a set-off. The matter was heard in the Supreme Court of Victoria. The Plaintiffs, seeking to enforce a loan agreement, argued that the Third Defendant, who was joined to the proceedings by consent, owed them money. They contested both the identity of the recipient of the loan and the terms of repayment of the principal loan amount and accrued interest. The Plaintiffs sought summary judgment against the Third Defendant, contending that there was no direct evidence of an oral contract, and that the defendant's conduct implied a binding agreement.

The legal issues before the court included whether a contract could be implied from the conduct of the parties and whether a summary judgment could be made against the Third Defendant. Additionally, the court had to determine if the Plaintiffs' application to strike out the whole of the Third Defendant’s Amended Defence should be granted, as the Amended Defence was based on the assertion that a loan is payable on demand in the absence of agreement on the repayment time. The court also considered the Plaintiffs' application to strike out the set-off pleaded in the First and Second Defendants' Further Amended Defence, despite the Plaintiff's concession that the Second Defendant may have availability of a set-off against the Second Defendant.

The court found that the conduct of the parties did not sufficiently establish an implied contract to allow for a summary judgment against the Third Defendant. The reasoning was based on the lack of direct evidence of any oral contract and the absence of a clear agreement on the terms of repayment. The court determined that the Third Defendant's Amended Defence did disclose a reasonable defence, as it was plausible that in the absence of specific terms, a loan could be payable on demand. Additionally, the court decided that it would not be appropriate to strike out the set-off pleaded by the First and Second Defendants, as there was a potential for a valid set-off claim. Consequently, the application to dismiss the case was dismissed.

Orders

Orders of the court

The application is dismissed

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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