PRACTICE AND PROCEDURE — pleadings — matters raised in oral and written submissions that were not pleaded in the defence by the defendant — the plaintiff took issue with unpleaded matters being raised — HELD — the defendant is not permitted to raise unpleaded matters that are likely to surprise and cause prejudice to the plaintiff
CORPORATIONS — entitlement to make certain assumptions in relation to dealings with company — whether the defendant was bound by the agreement entered into by its sole director and secretary — HELD — defendant company bound by the agreement entered into by its sole director and secretary
MORTGAGES AND SECURITIES — mortgagee’s duties, rights and remedies — mortgagee’s entitlement to recover the costs of enforcing its rights at common law and under contract — whether mortgagee disentitled to amount for enforcement costs — HELD — mortgagee cannot recover costs which were not proved to have been incurred — mortgagee otherwise disentitled to amount for enforcement costs incurred unnecessarily and unreasonably
ESTOPPEL — Anshun estoppel — basis on which the plaintiff sought to recover enforcement costs in these proceedings so connected to the subject matter of earlier proceedings in the Supreme Court of the Australian Capital Territory to make it unreasonable for the plaintiff not to have been made or raised it in those proceedings — high risk of conflicting judgments — HELD — elements of Anshun estoppel satisfied
Quick Take
1A sole director who is also sole company secretary of a proprietary company has actual authority under ss 127(1)(c) and 198E(1) of the Corporations Act to execute deeds binding the company; the statutory assumptions in ss 128–129 need not be invoked where the officer's status is undisputed.
2A mortgagee's general and contractual right to recover enforcement costs does not extend to costs unnecessarily or unreasonably incurred, including costs of proceedings dismissed for the mortgagee's own procedural non-compliance; and where the mortgagee was ordered to pay the mortgagor's costs in those proceedings, an Anshun estoppel prevents the mortgagee from recovering those costs via a contractual indemnity in later proceedings.
3A default interest rate that increases from 2% to 3% per month compounding monthly on a secured short-term loan — producing a nearly 350% greater monetary impact over the loan's life — is unenforceable as a penalty where the lender adduces no evidence that the increase reflects increased credit risk rather than a punitive incentive to perform.
Case Details
Citation[2026] NSWSC 875
CourtNSWSC
JurisdictionNew South Wales
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