In the courts

Decision upheld in consumer credit test case appeal
The High Court has confirmed the ability of lenders to set prepayment fees based on their business model and lending practices, rather than the "safe harbour" formula advocated by the Commerce Commission.

Defrauding creditors by transferring assets to trusts
The Supreme Court has provided further guidance on when it will rule that the transfer of assets to a trust constitutes intent to defraud creditors.

Solicitor not liable for creditor's loss
A solicitor who failed to register a mortgage promptly was not liable for the creditor's loss, because the borrower was an impostor.

Test case on voidable transactions
The process for setting aside a preferential transaction was changed in 2008. A recent High Court decision is the first using the new process.

Guarantee or indemnity?
This case provides a good summary of the distinction between a guarantee and an indemnity.

Is a term sheet a contract?
This case considered whether a term sheet constituted a contract.

Lender not liable for borrower's business failure
When a lender sought summary judgment pursuant to a personal guarantee, the guarantor counter-claimed against the lender for breach of "fiduciary duties" owed to him.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.