Wilson v St George Bank Limited

In *Wilson v St George Bank Limited* [1996] NSWCA 560, the New South Wales Court of Appeal considered a dispute between Mr Wilson and St George Bank Limited concerning the bank's alleged breach of duty in its dealings with Mr Wilson.

The central legal issues before the Court of Appeal were whether the bank owed Mr Wilson a duty of care in its capacity as a mortgagee exercising its power of sale, and if so, whether that duty had been breached. Specifically, the court had to determine if the bank had acted with reasonable care and diligence in conducting the sale of Mr Wilson's property, and whether the sale price obtained was a proper one.

The Court of Appeal applied established principles regarding the duties of a mortgagee exercising a power of sale. It held that a mortgagee is not a trustee for the mortgagor but must exercise its power of sale in good faith and with reasonable care to obtain a proper price. The court examined the evidence relating to the marketing and sale process, considering whether the bank had taken all reasonable steps to achieve the best price reasonably obtainable in the circumstances. The court found that the bank had acted appropriately in its conduct of the sale.

Consequently, the Court of Appeal dismissed Mr Wilson's appeal, upholding the primary judge's finding that the bank had not breached its duty of care to Mr Wilson.