Event and Time
Event Description
The case involves a lender, Aquamore Funds 2 Pty Ltd, who advanced a loan of $3.25 million secured by a mortgage and personal guarantees. The borrower, Church Point Apartments Pty Ltd, and its guarantors defaulted on the loan. The lender appointed a receiver, sold the property at a loss, and sought to recover the remaining balance from the borrower and guarantors.
Application and Claims
- The lender filed a claim against the borrower and guarantors for approximately $1.15 million following the property sale.
- The defendants sought to contest the amount owed, arguing about the validity of service and alleging perceived bias in the judge due to prior unrelated judgments.
Judicial Decisions
- The recusal application by Mr. Walker (a guarantor) was rejected, ruling that apprehended bias was not established.
- The lender was granted a judgment against the borrower and certain guarantors for the amount sought.
Dispute Points and Legal Basis
Dispute Points
1. Defendants' Claims: - Argued that the lender failed to mitigate losses by selling the property at an inadequate price. - Raised concerns over the service of documents on the borrowers, and alleged bias regarding the judge's prior judgments that referenced one of the guarantors.
2. Lender's Arguments: - Contended that the sale price reflected the market conditions and followed proper procedures. - Asserted that the service of documents was valid as the receiver acted on behalf of the borrower.
3. Evidence: - Evidence from the lender’s COO regarding the sale process and valuations. - No evidence provided by the defendants to substantiate their claims.