(12 May 2010 – Australia) Eddy Groves, former ABC Learning Centres chief executive officer, claims that the Commonwealth Bank of Australia mislead him over an extension on his line of credit, therefore forfeiting the bank’s claim over the Distinctive Homes Dome, the Supreme Court heard earlier this week.The Commonwealth Bank is suing Mr Groves for A$5 million plus interest for an overdue loan which the bank said they agreed to extend the payback period by three months; Mr Groves is claiming a five year agreement was reached.
Mr Groves’ lawyer argued the bank had promised him an extension on his loan, which was not forthcoming, he had been misled, throwing doubts on ‘whether there should be a debt at all’.
‘Had he not been misled he wouldn’t have arrangements with this bank,’ the lawyer said.
Mr Groves’ lawyer also argued the bank’s actions had caused difficulties with running the stadium, causing him financial loss.
Judge Robert Lunn reserved his decision in the matter.