On 21 September 2018, Justice Croft in the Supreme Court handed down a judgment in favour of Mr Young, a guarantor of two Great Southern Scheme loans. The Court dismissed the Bendigo Bank’s claim in its entirety and ordered that the bank pay Mr Young’s legal costs.
The Court found that Great Southern Finance had failed to validly execute the loan deeds as the formal requirements of its power of attorney had not been met, and there was no evidence that the facsimile signatures in the loan deeds had been authorised by its company officers. As a result, the loan deeds and the guarantee were unenforceable against Mr Young and so Mr Young was found to have no liability to the bank for the loans as guarantor.
This case was the first Great Southern guarantor case to proceed to trial and the first to succeed in setting aside the guarantee. This decision is:
If you would like to discuss this decision and how it may affect you, please contact Andrew Blogg or Nicole Jee (8600 6000), who acted for Mr Young in this proceeding.