SUPREME COURT OF VICTORIA
COURT OF APPEAL
S APCI 2012 0208
| RICHARD WEBSTER MARK WOLFE |
| v |
| PERMANENT CUSTODIANS LIMITED (ACN 001 426 384) |
- - -
| JUDGES | WARREN CJ, NEAVE and WHELAN JJA |
| WHERE HELD | MELBOURNE |
| DATE OF HEARING | 24 September 2013 |
| DATE OF JUDGMENT | 22 November 2013 |
| MEDIUM NEUTRAL CITATION | [2013] VSCA 331 |
| JUDGMENT APPEALED FROM | [2012] VSC 275 (Zammit AsJ) |
- - -
CONSUMER CREDIT - Re-opening transactions - Unjust terms - Unconscionability - Terms not unjust - No unconscionability.
CONTRACT - Duty to cooperate - No breach.
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| Appearances: | Counsel | Solicitors |
| For the Appellant | Mr T J Sowden with Mr K J Dernelley | George Erlichster |
| For the Respondent | Mr S D Hay | Gadens Lawyers |
WARREN CJ
NEAVE JA
WHELAN JA:
Background
Permanent Custodians Limited (‘Permanent’) holds a first registered mortgage over a property in Pascoe Vale (‘the Property’) securing a loan of $323,000 by Permanent to the appellant, Mr Wolfe, and his former partner, Ms Gayle Breasley.
Mr Wolfe and Ms Breasley separated in November 2007. Both Mr Wolfe and Ms Breasley are parties to the loan agreement. The mortgage was given by Ms Breasley as the sole registered proprietor of the Property.
Mr Wolfe and Ms Breasley entered into terms of settlement in relation to their separation. It was agreed that the Property would be transferred to Mr Wolfe upon the sale of an adjoining property. It is unclear whether that transfer ever occurred.
In 2008 there was default on the loan. In August 2009 Permanent obtained default judgment for the full amount of the loan against Mr Wolfe, and default judgment for the loan and for possession of the Property against Ms Breasley. A warrant of possession was issued to enforce the judgment for possession. At that time Mr Wolfe was living at the Property. Eviction by the Sheriff was scheduled for the round of evictions in the week commencing 4 December 2009.
In an attempt to salvage the situation, Mr Wolfe made an arrangement with Permanent on 1 December 2009. The arrangement was constituted by, or recorded in, a letter of that date from Permanent’s solicitors, Gadens, to a solicitor then acting for or assisting Mr Wolfe, George Erlichster.[1]
[1]The judgment below describes the agreement as being ‘embodied’ in the 1 December 2009 letter. At trial there were disputes about that but those disputes were not pursued on the appeal.
Under the terms of the arrangement made, Mr Wolfe was to pay a specified sum (being ‘arrears’, fees and costs, and ‘2 months payments in advance’) and to ‘ … then maintain all future repayments as and when they fall due’. Permanent was to ‘stay the eviction’. The arrangement included the following terms:
… all payments made will be accepted by our client [Permanent] without prejudice to its rights to rely on the existing Judgment and Warrant for Possession …
… if … your client [Mr Wolfe] defaults in repayments from February 2010, then our client [Permanent] reserves its rights to proceed with further…
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- AGLC
- Wolfe v Permanent Custodians Ltd [2013] VSCA 331
- Case
- [2013] VSCA 331
- Decision Date
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Orders
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