Internationally
renowned aquarium builder Ian Mellsop was ordered to pay $320,500 to financier
Export Finance after director Greg Fitzimmons finally lost patience. Refinancing Mellsop’s business was abused, he
said, when a mere $3000 was paid down on escalating business debt at a time
when Mr Mellsop spent tens of thousands repairing his boat.
The High Court was told
Export Finance Ltd assisted Mr Mellsop in his construction of a new aquarium in
Chennai and facilitated the sale of his shares in a Thai aquarium. Mr Fitzsimmons took an accommodating approach
to Mr Mellsop’s ongoing indebtedness. Three
successive deeds with Export Finance were signed by Mr Mellsop and his
companies acknowledging debts due and agreeing to repayment schedules. Each time repayments were not fully met. The third and final deed was signed in
2014. Three years later Export Finance
sued to recover its money. Mr Mellsop
said there was an oral agreement to further delay payment and to cap the amount
owing. He further said 25 per cent
interest charged on the debt was oppressive, in breach of the Credit Contracts
and Consumer Finance Act.
Associate judge
Sargisson said it was inherently implausible that a vague and imprecise alleged
oral agreement existed to contradict their written contract. A default interest rate of 25 per cent was
not oppressive, she said. They are
experienced business people.
Export
Finance Ltd v. Mellsop – High Court (24.11.17)
18.010