Drury v Stone

The appeal in *Drury v Stone* concerned a challenge to a mortgage brought by the appellant, Ms Drury, against the respondent bank. Ms Drury sought orders under section 7(1)(b) of the *Contracts Review Act 1980* (NSW) that the mortgage be declared void, alleging it was unjust in the circumstances.

The central legal issues before the Court of Appeal were whether the bank had a duty to advise Ms Drury on the viability of the business for which the mortgage was granted, and whether the bank should have warned her of the "real risk" that she might lose her home and the legal consequences of entering into a mortgage.

The Court of Appeal considered the nature of the relationship between the parties and the bank's obligations in providing finance. It was held that the bank's role was not to provide business advice or to assess the commercial viability of the appellant's venture. The bank's duty was limited to ensuring the appellant understood the nature and effect of the mortgage documents she was signing. The Court found no evidence to suggest the bank had acted unconscionably or that the mortgage itself was unjust within the meaning of the *Contracts Review Act*.

Consequently, the appeal was dismissed with costs.