6-8 William Street, Nambour, Sunshine Coast

Civil Litigation Case Study: Enforcement of Verbal Loan Agreement

Background

In a challenging dispute that entailed a blend of family dynamics and financial agreements, the skills of Brent King and Callum Neal from Butler McDermott Lawyers were put to the test. The case, rooted in civil litigation, revolved around a dispute involving a verbal loan agreement between family members, illustrating the complexities and challenges often inherent in cases that straddle both financial agreements and family relations.

The Challenge

The client approached Butler McDermott Lawyers after facing significant difficulties with a verbal loan agreement he had made with his mother. Following a substantial personal injury (PI) settlement, the client had verbally agreed to lend money to his mother for the purpose of purchasing a home. Complications arose when the mother failed to uphold her end of the agreement by not making any repayments and outright denying the existence of the loan. To exacerbate the situation, the client was forcibly removed from the property, which was now occupied by his mother and an ex-partner who had previously taken out a Domestic Violence Order (DVO) against him. The client’s predicament was further complicated by family law proceedings initiated by the ex-partner, leading to a significant financial settlement against him.

Butler McDermott Lawyers’ Intervention

Recognising the intricate dynamics at play, Brent King and Callum Neal crafted a strategic legal response to address the multifaceted challenges faced by the client. Their approach was centred around initiating proceedings in the Magistrates Court with a robust posture that included threats to strike out the opposing party’s pleadings. This assertive legal strategy was designed to underscore the serious implications of non-compliance and the firm’s commitment to securing justice for their client.

Outcome

The legal manoeuvres employed by Butler McDermott Lawyers yielded a remarkable result. The opposing party, faced with the prospect of their pleadings being struck out and the materialisation of the aggressive litigation strategy, capitulated entirely. This capitulation took the form of an agreement to return the full loan amount to the client, along with half of the accrued interest, in exchange for discontinuing the proceedings.

Conclusion

This case not only underscores the pivotal role of skilled legal representation in resolving complex disputes but also highlights the potential consequences of verbal agreements within families, where misunderstandings and misinterpretations can lead to significant legal and financial repercussions. For the client, the resolution brought about by Brent King and Callum Neal from Butler McDermott Lawyers provided not only the recovery of the loan amount but also a form of closure from a highly distressing chapter in his life.

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Peter Boyce

Consultant

Peter has been practising as a Nambour Solicitor since 1977 and joined Butler McDermott Lawyers the same year.

With over 40 years practicing as a Sunshine Coast lawyer, Peter has extensive knowledge of various facets of law.

He has practised in all areas of litigation and has special interests in:

  • Criminal law
  • Civil and Commercial litigation
  • Retirement Village matters
  • Sports law
  • Resumption of land and compensation claims

 

Peter has specialised knowledge of and experience with resumption matters as a result of the Traveston Dam project, road corridors, Main Roads and water pipeline. He is renowned for his professional approach and is an experienced and determined advocate.

Brent King

Solicitor/Director

Brent works as a litigation lawyer, providing litigation legal advice in relation to both civil and criminal law matters, including:
  • Defamation Claims
  • Contract and Debt Disputes
  • Building and Construction Disputes
  • Planning Matters
  • Criminal Law and Traffic Legal Matters
Having grown up on the Sunshine Coast and joining Butler McDermott after the completion of his studies, Brent appreciates the needs of our clients, and brings a particularly commercial approach to litigation. Brent is a member of the Queensland Law Society and the Sunshine Coast Law Association, and has litigated a wide variety of matters in the Magistrates, District and Supreme Courts.

Al Upton

Solicitor/Director

After arriving at Butler McDermott Lawyers in 2016, Al quickly progressed to running our Wills and Estates section and has successfully litigated disputes in the Supreme and District Courts of Queensland in the early stages of his career.

In the years that followed Al has now moved to assist our clients with commercial and property matters having achieved positive outcomes in that area as well as general litigation. Al’s experience has him uniquely placed to provide quality advice in the areas of property, commercial, wills and estates and general litigation.

Al is involved in giving back to the community, sitting on the board for the Daniel Morcombe Foundation and Sundale Community Foundation. He otherwise became a director of Butler McDermott Lawyers in November 2021.