bendigo: partial court win

Fin Review - 4/3/2010

"A NSW Supreme Court judge has struck out claims that Bendigo and Adelaide Bank's $490 million worth of loans given to Great Southern investors should be declared void, although both the bank and the investor suing it claim the move as a win.

Financial planner Stephen Navara took Bendigo Bank to court late last year in a bid to prevent it from handing over the details of 273 clients of his firm to credit agencies. The clients stopped paying the loans after it emerged that Great Southern had mismanaged its various agriculture managed investment projects.

Yesterday judge David Hammerschlag struck out parts of Mr Navara's claim, including arguments that the loans should be declared void on account of alleged misrepresentation or misleading conduct by Great Southern."

Further on it continues -

"The judge allowed the case to proceed on the narrower scope that the loans were not properly transferred, and hence cannot be enforced by the bank.

Mr Navara's lawyer, Daren Anderson, said his client preferred to fight the case on the narrower basis. The question of whether the bank can credit list his clients will return to court on March 12"