Bank loses loans case against property developer

Westpac has lost a case against prominent Auckland property developer Mark Cooper over loans worth millions of dollars.

Justice Ailsa Duffy in the High Court at Auckland rejected the bank's application for summary judgment against him.

Cooper's South Pacific borrowed $1.9 million from the bank and took a mortgage on an upmarket Waiheke Island holiday home. Another business, Enfield Estate, also got $3.8 million from Westpac.

The Waiheke holiday home was valued at $2.6 million but it sold last year for just $1.4 million.

Westpac wanted the outstanding amounts and interest.

But Judge Duffy found Westpac had not made its claims against Cooper correctly and not followed the law. She backed lawyers for Cooper at Kensington Swan who argued the bank had failed to make its claim properly.

Westpac said Cooper had given personal guarantees but the sale of two properties had not achieved prices that satisfied the full indebtedness of each company.

Westpac wanted to enforce those guarantees.

The judge refused the bank's application and said Cooper was entitled to costs. The case was heard in September.