FOS jurisdiction upheld in ANZ wrangle

The Supreme Court of Victoria has upheld a decision of the Financial Ombudsman Service that a court, rather than the service, was best placed to consider a dispute between a Melbourne toy maker and ANZ.

Goldie Marketing, a maker of Mattel Hot Wheels, Transformers and 20th Century Fox characters, fell into default with ANZ in December 2013, only three months after the bank extended "seasonal funding" to the manufacturer.

The borrower took the matter to FOS, claiming ANZ "negligently lent to GM when the company was 'over-leveraged', delayed in assessing and approving seasonal funding for its business activities," and "failed to give enough assistance to the borrowers to help them overcome their financial difficulties."

In November 2014 FOS resolved to exclude the dispute from its jurisdiction on the basis that the court was a more appropriate place to deal with the dispute.

Goldie, however, persisted in agitating, via the courts, for FOS to consider its dispute with ANZ.

Justice Joanne Cameron last week ruled that "there was no basis for the court to look behind the [FOS] November Jurisdictional Decision," in effect ignoring a side flap over whether staff shortages at the ombudsman were relevant.

Cameron wrote in the conclusion to her judgment that "the reasons given and decision made by Dr Tonti-Filippini [the ombudsman] in the November Jurisdictional Decision are 'compelling' within the terms of the Operational Guidelines.

"They are convincing, rational, logical, reasoned and comprehensive.

I consider that FOS's decision to exclude the dispute was valid and the court should not disturb it."