Bylander International Consortium (Aust) Pty Ltd v Multilink Investments Pty Ltd

Bylander International Consortium (Aust) Pty Ltd (the appellant) appealed to the Supreme Court of Victoria from a decision of the County Court concerning a guarantee provided by the respondent, Multilink Investments Pty Ltd. The dispute centred on whether the appellant had engaged in unconscionable conduct in procuring the guarantee from the respondent.

The primary legal issue before the Supreme Court was whether the County Court had erred in finding that the appellant had engaged in unconscionable conduct contrary to the principles of equity. This involved an examination of the circumstances surrounding the execution of the guarantee, particularly the relationship between the parties and the nature of the transaction.

The Supreme Court found that the County Court had misapplied the equitable principles relating to unconscionable conduct. It held that the appellant's actions, while perhaps commercially aggressive, did not reach the threshold of unconscionability required to set aside the guarantee. The court emphasised that mere commercial pressure or a disparity in bargaining power, without more, does not constitute unconscionable conduct. The appeal was therefore allowed, and the orders of the County Court were set aside.