This week's TGIF considers the recent case of
Collopy v Commonwealth Bank of Australia [2019] WASCA 97.
This Western Australian Court of Appeal decision confirms the value
of conclusive evidence clauses.
Background
In 2002, Ms Lavanter (Borrower) and her husband
entered into two loan agreements with the Commonwealth Bank of
Australia Ltd (Bank) secured by existing mortgages
over two properties. In 2003, the Borrower's husband entered
into a third loan agreement. The Borrower signed a guarantee and
indemnity, and the loan was secured by the mortgages. The facility
limits for each facility were later increased, with corresponding
increases in liability under the guarantees.
In 2007, the Borrower's husband died and she became the
administrator of his estate. She sold one property to partially
repay the advances made under the loan agreements but later redrew
and eventually defaulted. Some of the further re-drawings were used
to reduce the indebtedness on the other
