NZI Capital Corp Ltd v Fulton, Margaret Isabel & Anor [1998] FCA 667

FEDERAL COURT OF AUSTRALIA

EQUITY – unconscionability – guarantee and mortgage – special disability or disadvantage – actual knowledge of disability or disadvantage - whether creditor put on enquiry as to position of disability or disadvantage – adviser acting as agent of creditor – constructive notice. APPEALS – whether for appellate purposes a finding by a trial judge of unconscionable conduct should be regarded as discretionary. Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447, applied Blomley v Ryan (1956)99 CLR 362, applied Beneficial Finance Corporation Ltd v Karavas (1991) 23 NSWLR 256, applied Louth v Diprose (1992) 175 CLR 621, applied Lisciandro v Official Trustee in Bankruptcy (1996) 69 FCR 180, cited Kleinwort Benson Australia Ltd v Armitage (Cole J, Supreme Court of New South Wales, 26 April 1989, unreported), considered Kings North Trust Ltd v Bell [1986] 1 WLR 119, considered Challenge Bank Ltd v Pandya (1993) 60 SASR 330, considered Barclays Bank PLC v O'Brien [1994] 1 AC 180, considered Commonwealth Bank of Australia v Smith (1991) 42 FCR 390, cited Blackwell v Barroile Pty Ltd (1994) 51 FCR 347, cited State Bank (NSW) Ltd v Burke (1997) NSW Conv R 55-814, considered NZI CAPITAL CORPORATION LIMITED v MARGARET ISABEL FULTON AND MARGARET FULTON ENTERPRISES PTY LIMITED NG 766 of 1997 BLACK CJ, DAVIES AND LEHANE JJ SYDNEY 10 JUNE 1998

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 766 of 1997

BETWEEN: On appeal from a single judge of the Federal Court of Australia

NZI CAPITAL CORPORATION LIMITED

AppELlAnt

AND: MARGARET ISABEL FULTON

First Respondent

MARGARET FULTON ENTERPRISES PTY LIMITED