Cole v Challenge Bank Ltd

Cole and Cole Engineering Pty Ltd brought a claim against Challenge Bank Ltd and another firm of accountants. The applicants sought damages on the basis that the bank had acted unconscionably in terminating its financial support to Cole Engineering, which was in liquidation. The legal issues involved whether the bank's conduct was unconscionable under section 51AC of the Trade Practices Act 1974 (Cth) and whether the applicants' claims against the second respondent, the firm of accountants, were justiciable. The court found that the bank's conduct was not unconscionable, as the bank had a legitimate business reason to demand financial information and terminate its financial support due to the company's financial difficulties. The court also found that the applicants' claims against the second respondent were not justiciable, as the firm of accountants had not engaged in any unconscionable conduct. The court dismissed the application and struck out the statement of claim. The applicants were ordered to pay the respondents' costs of the application, including any reserved costs.