Decided 2 July 1991 End date July 2, 1991 | Citation(s) [1992] 1 NZLR 449 Judge sitting Andrew Tipping | |
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Full case name Bowkett v Action Finance Ltd | ||
Bowkett v Action Finance Ltd [1992] 1 NZLR 449 is a cited case in New Zealand regarding unconscionable bargains.
Contents
Background
The Bowketts, an elderly couple, under pressure from their son Michael, agreed to use their house as security for a loan for their son with Action Finance. The Bowketts did not seek independent legal advice, but Action Finance's legal executive advised them to do so, as well as explaining the nature of the transaction.
When the son later defaulted on the loan, and Action Finance sought to foreclose on their house.
The Bowkett's managed to get an interim injunction to stop the sale, pleading unconscionable bargain.
Action Finance appealed to have the injunction lifted.
Held
The court refused to lift the injunction, as the Bowketts were under a special disability when they entered into the transaction.