Brown v Wespac Banking Corporation

In *Brown v Wespac Banking Corporation*, the New South Wales Court of Appeal considered a dispute between the appellants, Mr. and Mrs. Brown, and the respondent, Wespac Banking Corporation. The Browns sought to set aside a mortgage over their property, alleging that the mortgage was procured by undue influence and unconscionable conduct on the part of Wespac.

The central legal issues before the Court of Appeal were whether the mortgage was voidable due to undue influence exerted by Wespac over the Browns, and whether Wespac had engaged in unconscionable conduct in procuring the mortgage. The court was required to determine if the Browns were in a position of special disadvantage, and if Wespac had knowledge of and unconscionably exploited that disadvantage.

The Court of Appeal found that the Browns had failed to establish undue influence. It applied the principles that undue influence requires proof that the will of the stronger party dominated the will of the weaker party, and that the transaction was not the independent and informed act of the weaker party. Regarding unconscionable conduct, the court reiterated that it requires a party to be under a special disadvantage, and the other party to have unconscionably taken advantage of that disadvantage. The court concluded that the evidence did not support the existence of a special disadvantage or unconscionable conduct by Wespac.

Consequently, the Court of Appeal dismissed the Browns' appeal and affirmed the decision of the primary judge, upholding the validity of the mortgage.