Coggin v Telstar Finance Company (Q) Pty Ltd [2006] FCA 191

FEDERAL COURT OF AUSTRALIA

Coggin v Telstar Finance Company (Q) Pty Ltd [2006] FCA 191 TRADE PRACTICES – unconscionable conduct – Trade Practices Act s 51AC – applicant persuaded to use fishing boat as collateral for loan from first respondent to finance purchase of a business by de facto son-in-law – applicant signs contracts for sale and option to repurchase – applicant's judgment affected by spider bite and desire to help daughter and son-in-law – lack of independent legal and business advice – excessive interest on loan – first respondent takes a transfer of business from vendor and onsells to applicant with undisclosed profit – loan commitments not met – first respondent sell applicant's boat – balance of proceeds from sale not paid to applicant – requirements of unconscionable conduct under s 51AC – whether second respondent liable as a person directly and knowingly involved in contravention Trade Practices Act 1974 (Cth) ss 51AC, 75B, 82(1) Australian Competition and Consumer Commission v Simply No-Knead (Franchising) Pty Ltd (2000) 104 FCR 253 at [37] followed Australian Competition and Consumer Commission v 4WD Systems Pty Ltd (2003) 59 IPR 435 at [183] followed Hurley v McDonald's Australia Ltd (2000) ATPR 41-741 at [22] applied Rural Press Ltd v Australian Competition and Consumer Commission (2003) 216 CLR 53 applied Yorke v Lucas (1985) 158 CLR 661 cited Wardley v Western Australia (1992) 175 CLR 514 at 525 cited Spencer v The Commonwealth (1907) 5 CLR 418 at 431 cited DAVID COGGIN v TELSTAR FINANCE COMPANY (Q) PTY LTD & ANOR VID 907 OF 2002 HEEREY J 10 MARCH 2006 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VID 907 OF 2002

BETWEEN: DAVID COGGIN

APPLICANT

AND: TELSTAR FINANCE COMPANY (Q) PTY LTD ACN 010 862 889