Court told of 'disparaging' remarks on radio

Money Managers owed National Mortgage Brokers a duty to act in good faith, yet one of its directors, Doug Somers-Edgar, made "disparaging" remarks about the firm in a radio broadcast, defence counsel told the High Court in Auckland.

Bret Gustafson said it was accepted by both parties that Somers-Edgar had made the remarks in a Radio Pacific show on October 14, 2001. Money Managers is suing National for $753,000 commission for marketing a contributory mortgage to fund Greg Olliver on his Long Bay property project north of Auckland.

National's counsel said Somers-Edgar had said Money Managers would not deal with National because it was "hopeless", that National was viewed by merchant banks as a "soft touch", was lending to undesirable borrowers and that 90 per cent of all complaints received were against National.

Those statements implied that National was reckless in its lending practices, had numerous defaulting loans, was subject to a large number of complaints and was not well-regarded in the finance industry. The case is due to finish today.