Nitopi v Nitopi [2022] NSWCA 162

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Nitopi v Nitopi [2022] NSWCA 162 Hearing dates: 21 April 2022 Date of orders: 26 August 2022 Decision date: 26 August 2022 Before: Bell CJ at [1]; Ward P at [53]; White JA at [196] Decision: 1. Appeal allowed in part. 2. Amend the order for entry of judgment against the appellant (the third defendant in the proceedings below) in favour of the administrator of the estate of the late Edigio Nitopi to substitute for the sum of $2,220,335.02 the sum of $202,000 plus interest calculated at the rate agreed between the parties at the time of entry of the orders made in the proceedings below from 4 June 2010 to the date of judgment in the proceedings below. 3. Order that the respondent (as administrator of the deceased's estate) repay to the appellant by way of restitution any moneys paid by the appellant over and above the amount payable pursuant to the order as varied by order 2 above, in respect of the impugned payments 4. Order that the respondent (as administrator of the deceased's estate) pay the appellant's costs of the appeal. 5. Set aside the orders for costs of the proceedings below and direct the parties to file any brief written submissions in relation to those costs within 14 days. Catchwords: EQUITY – Unconscionable conduct – Special disability or disadvantage – Whether constructive notice of special disadvantage sufficient – Whether equitable presumption of the unconscientious taking of advantage arises where disadvantage of a kind that renders the disadvantaged person incapable of judging their best interests, and knowledge of such disadvantage, are proved to the requisite standard Cases Cited: Aboody v Ryan [2012] NSWCA 395 Allcard v Skinner (1887) 36 Ch D 145 Amit Laundry v Jain [2017] NSWSC 1495 Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd (2003) 214 CLR 51; [2003] HCA 18 Banque Commerciale SA En Liquidation v Akhil Holdings Limited (1990) 169 CLR 279; [1990] HCA 11 Black v S Freedman & Co (1910) 12 CLR 105; [1910] HCA 58 Blomley v Ryan (1956) 99 CLR 362; [1956] HCA 81 Bridgewater v Leahy (1998) 194 CLR 457; [1998] HCA 66 Browne v Dunn (1893) 6 R 67 (HL) Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447; [1983] HCA 14 Commonwealth v Verwayen (1990) 170 CLR 394; [1990] HCA 39 D v L (1990) 54 SASR 438 Dare v Pulham (1982) 148 CLR 658; [1982] HCA 70 Dewar v Ollie [2020] WASCA 25 Earl of Aylesford v Morris (1873) LR 8 Ch App 484 Estate of Nitopi (No 2) [2021] NSWSC 748 Garcia v National Australia Bank Ltd (1998) 194 CLR 395; [1998] HCA 48 Hanna v Raoul [2018] NSWCA 201 Hart v O'Connor [1985] AC 1000 Heperu Pty Ltd v Belle (2009) 76 NSWLR 230; [2009] NSWCA 252 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd (No 6) (2007) 63 ACSR 1; [2007] NSWSC 124 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd (2008) 73 NSWLR 653; [2008] NSWCA 206 Johnson v Smith [2010] NSWCA 306 Kakavas v Crown Melbourne Limited (2013) 250 CLR 392; [2013] HCA 25 Louth v Diprose (1992) 175 CLR 621; [1992] HCA 61 Mackowik v Kansas City St J & C B R Co 94 SW 256, 262 (1906) Mavaddat v HSBC Bank Australia Ltd [No 2] [2016] WASCA 94 Morrison v Coast Finance Ltd (1965) 55 DLR (2d) 710 National Westminster Bank Plc v Morgan [1985] AC 686 Neilson v Letch (No 2) [2006] NSWCA 254 Nichols v Jessup [1986] 1 NZLR 226 Owen v Homan (1853) 4 HL Cas 997; 10 ER 752 Permanent Trustee Co Ltd v Bridgewater (1936) 36 SR (NSW) 643 Serventy v Commonwealth Bank of Australia [No 2] [2016] WASCA 223 South Australian Cold Stores Ltd v Electricity Trust of South Australia (1957) 98 CLR 65; [1957] HCA 69 Stubbings v Jams 2 Pty Ltd (2022) 96 ALJR 271; [2022] HCA 6 Thorne v Kennedy (2017) 263 CLR 85; [2017] HCA 49 Turner v O'Bryan-Turner [2021] NSWSC 5 Turner v Windever [2003] NSWSC 1147 Turner v Windever [2005] NSWCA 73 Vines v Australian Securities and Investments Commission (2007) 73 NSWLR 451; [2007] NSWCA 75 Wilton v Farnsworth (1948) 76 CLR 646; [1948] HCA 20 Wu v Ling [2016] NSWCA 322 Texts Cited: B McDonald, B Chen and J Gordon (eds), Dynamic and Principled: The Influence of Sir Anthony Mason (2022, Federation Press) 376 P Ridge, "Sir Anthony Mason's Contribution to the Doctrine of Unconscionable Dealing: Amadio's Case" R Bigwood, "Still Curbing Unconscionability: Kakavas in the High Court of Australia" (2013) 37 Melbourne University Law Review 463 Sir Anthony Mason, "Contract, Good Faith and Equitable Standards in Fair Dealing" (2000) 116 Law Quarterly Review 66 Y K Liew and D Yu, "The Unconscionable Bargains Doctrine in England and Australia: Cousins or Siblings?" (2021) 45(1) Melbourne University Law Review 206 Category: Principal judgment Parties: Cristina Nitopi (Appellant) Giuseppe Nitopi (Respondent) Representation: Counsel: DL Cook SC with G Ng (Appellant) L Ellison SC with D Liebhold (Respondent)