On 4 September his Honour Mr Justice Price of the Supreme Court Ordered Permanent Trustee Company and Tonto Home Loans Australia Pty Limited to discharge Mortgages they had taken over our clients’ homes and hand back the title deeds. They were also to pay legal costs.
This followed a prolonged 3 year battle where Permanent and Tonto used all legal devices to try to stop these cases getting to court.
Having persisted with the help of another generous client who provided a significant proportion of the legal fees and an agreement by one of Australia's most prominent QCs to work with us on a success fee basis, we were able to prove to the court that the contracts entered into, that is the Mortgages, were unfair.
What we were able to show was that Permanent Trustee Company Limited, through its broker, Tonto Home Loans, had entered into an agency agreement with a fraudulent company known as Streetwise. Streetwise attracted people who were concerned about providing for their retirement, and who decided to use the equity in their homes to borrow money on 'lo doc loans'. That money was misappropriated by Streetwise, leaving our three clients out of pocket in excess of $500,000 each.
His Honour found that in each case, the contracts were unfair because Tonto entered into an agreement with Streetwise that was detrimental to our clients and because of that agreement they could not enforce their mortgages.
These three cases will have far reaching affect. However, at the date of publication, we are awaiting a possible appeal as no doubt the "big end of town" will fight all the way that their deep pockets allow.
GEOFFREY M ROBERSON
Lawyer
Commercial, Litigation and Probate
