Stubbings v. Jams 2 Pty Ltd & Ors

Lower Court Judgment

05/08/2020 Supreme Court of Victoria (Court of Appeal) (Beach, Kyrou and Hargrave JJA)

[2020] VSCA 200

Catchwords

Equity – Unconscionable conduct – Wilful blindness – Where applicant borrowed from respondent lenders secured only on applicant’s assets – Where applicant without regular income and defaulted – Where respondents’ system of asset-based lending included deliberate intention to avoid receipt of information about personal and financial circumstances of borrower or guarantor –Where certificate of independent financial advice given in respect of transaction – Where respondents brought proceedings for possession of applicant’s assets – Where primary judge found respondents wilfully blind and had actual knowledge as to applicant’s personal and financial circumstances – Where respondents successfully appealed to Court of Appeal, which overturned primary judge’s findings as to knowledge – Whether lender’s conduct unconscionable by engaging in system of asset-based lending without receipt of information about personal or financial situation of borrower, or alternatively, wilfully or recklessly failing to make such enquiries an honest and reasonable person would make – Whether Court of Appeal entitled to overturn findings of primary judge as to respondents’ knowledge.