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Australia unconscionable conductasset based lending

Stubbings v Jams 2 Pty Ltd

(2022) 276 CLR 233
JurisdictionAustralia
CourtHigh Court of Australia
Year2022
StatusBinding authority

Key Principle

An asset-based lender engages in unconscionable conduct (in equity and under statute) where it deliberately structures its lending through intermediaries and relies on formal certificates of independent legal and financial advice to wilfully shut its eyes to a borrower's obvious special disadvantage, since substance prevails over form and such studied ignorance does not insulate the lender from knowledge of vulnerability.

Area of Law

insolvency

Related Cases

Stubbings v Jams 2 International Pty Ltd Stubbings v Jams 2 Pty Ltd [2022] HCA 6; (2022) 399 ALR 409
Badenoch Integrated Logging Pty Ltd v Bryant [2021] FCAFC 64
CGU Insurance Ltd v Blakeley (2016) 259 CLR 339

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