Gairdner farmer slams bank

The latest saga in a long-running dispute between Gairdner farmer Frank Bertola and ANZ Bank played out in the Supreme Court of WA last week.

Mr Bertola was represented in court by Perth corporate lawyer Leigh Warnick, who argued ANZ had acted unconscionably when the bank truncated the terms of Mr Bertola's loan arrangements - from a term due to expire on February 28, 2031 to that of a term due to expire on March 31, 2010.

Mr Warnick said it appeared to be done "sneakily" and "suddenly" and that Mr Bertola was given no reason for the change.

He said the bank had made a decision to "get rid" of this loan book from its list.

"Something strange has happened here," he said.

ANZ claims Mr Bertola - personally and through company assets of Olawa Pty Ltd - should pay a debt of $3.8 million, plus interest and costs, and hand over possession of the properties Coonawarra and San Pedro to the bank.

In court, Mr Warnick argued ANZ did not correctly handle the changeover regarding the legalities of Mr Bertola's account, after the Australian Wheat Board's sale of Landmark Financial Services - the entity Mr Bertola originally borrowed from - to ANZ in 2009.

The situation had been further complicated by involvement in Mr Bertola's account by ANZ's trustee in this issue, Permanent Custodians Ltd - a subsidiary of BNY Mellon Australia Ltd.

Mr Warnick argued ANZ itself was not in a legal position to collect Mr Bertola's debt.

"It may have been a dreadful mistake the bank has made. It is a technical issue, but it is an issue," Mr Warnick said.

Representing ANZ, Perth barrister Katrina Banks-Smith said the loan arrangements had been subject to a yearly review, which was stated in the terms and conditions, and the lender had been "concerned" about Mr Bertola's growing debts.

Ms Banks-Smith said Mr Bertola's account had been in a "distressed" state for some time.

She said Mr Bertola had entered into an asset management agreement that could be described as a straightforward contract, which he had signed.

Several farmers claim they were encouraged to take out big loans to grow their businesses under the scheme previously run by Landmark Financial Services.

Mr Bertola said a short time after ANZ took over those farm business portfolios, the bank took a hard-line approach and, in some cases, revised loan repayment schedules.

This was the first time Mr Bertola had received professional legal assistance. Prior to this round of legal action, he had represented himself.

Master Sanderson, of the Supreme Court of WA, reserved his decision.

Rural Action Movement president Greg Kenny, who was present at the Court to support Mr Bertola, said he knew of four other farmers who were in a similar situation.

He said their loan terms had also been truncated by ANZ, putting them at risk of defaulting.