NOT FOR DISTRIBUTION

FEDERAL COURT OF AUSTRALIA        )

NEW SOUTH WALES DISTRICT REGISTRY)    No 397 of 1992

GENERAL DIVISION                  )

                             BETWEEN:

                             PETER WILLIAM METCALFE

                             Applicant

                             AND:

                             NZI SECURITIES AUSTRALIA LTD

                             NZI CAPITAL CORPORATION LTD

                             and MICHAEL EDWARD WAYLAND

                             Respondents

SACKVILLE J.

SYDNEY

17 MARCH 1995

                     RULING ON EVIDENCE

HIS HONOUR:   In my view Mr Nelson's qualifications, as dealt with in more detail in his affidavit of 8 March 1995, provide a basis for him expressing a view as to what a prudent lender would have done in April 1990. 

In paragraph 8 of the affidavit of 6 February 1995 Mr Nelson states the course that he considers that a prudent lender would have taken.  There is some ambiguity in the language with which this is expressed.  However, in substance, I would regard this as responding to the expressions of opinion given by Messrs Illman and Shaw and I propose to allow paragraph 8 to be read. 

Mr Coles, I think, accepts that the last sentence of paragraph 7  will stand or fall with paragraph 8 so I shall allow the last sentence of paragraph 7 to be read as well.

                   I certify that this and the preceding 1 page are a true copy of the Reasons for Judgment of the Honourable Justice Sackville.

                   Associate:

                   Dated:   

Heard:             17 March, 1995

Place:             Sydney

Decision:          17 March, 1995

Appearances:       Mr J. Hamilton QC and Mr N. Francey, instructed by Blessington Judd, Solicitors, appeared for the applicant.

                   Mr B. Coles QC with Mr D. Robinson and Mr M. Ashhurst, instructed by Holmes & Bevan, Solicitors, appeared for the respondents.