West Werribee Pty Limited v Australia and New Zealand Banking Group Ltd

West Werribee Pty Limited (the plaintiff) brought proceedings against Australia and New Zealand Banking Group Ltd (the defendant) in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the plaintiff's claim for damages arising from the defendant's alleged breach of contract and negligence in relation to a loan facility provided to the plaintiff.

The central legal issues before the Court of Appeal were whether the defendant had breached its contractual obligations to the plaintiff by failing to provide the full amount of the loan facility as agreed, and whether the defendant had acted negligently in its dealings with the plaintiff concerning the loan. The court was required to consider the terms of the loan agreement and the standard of care expected of a bank in such circumstances.

The Court of Appeal found that the loan agreement was clear and that the defendant was contractually bound to provide the full loan amount. The court held that the defendant had breached this contractual obligation. Furthermore, the court determined that the defendant had also breached its duty of care to the plaintiff, acting negligently in its management of the loan facility. The court applied principles of contract law and the tort of negligence, assessing the defendant's conduct against the reasonable expectations of a prudent banker.

The Court of Appeal allowed the plaintiff's appeal, setting aside the decision of the primary judge and remitting the matter to the Supreme Court for assessment of damages.