Kakavas v Crown Melbourne Ltd

The High Court of Australia considered an appeal by Mr Kakavas against Crown Melbourne Ltd concerning significant gambling losses. Mr Kakavas, who had been diagnosed with pathological gambling, had lost approximately $20.5 million at Crown's casino. He was also subject to an interstate exclusion order under the *Casino Control Act 1991* (Vic) at the time of some of his gambling activities. The core of the dispute was whether these gambling transactions were rendered voidable due to unconscionable dealing by Crown Melbourne.

The central legal issues before the High Court were whether Mr Kakavas suffered from a "special disadvantage" that made him susceptible to exploitation by Crown Melbourne, and if so, whether Crown Melbourne had sufficient knowledge of this disadvantage to render its conduct unconscionable. The Court was required to determine whether the appellant's condition of pathological gambling constituted a special disadvantage in the equitable sense, and whether Crown Melbourne's employees possessed actual or constructive knowledge of this condition and its implications for Mr Kakavas's capacity to make rational decisions regarding his gambling.

The High Court rejected the appellant's reliance on constructive notice to establish Crown Melbourne's awareness of his personal disability. The Court found that the evidence did not support findings that Crown's employees were aware of any specific personal disability affecting Mr Kakavas that would render his gambling transactions unconscionable. Consequently, the challenges raised by Mr Kakavas against the decision of the Court of Appeal were unsuccessful. The appeal was dismissed, and Mr Kakavas was ordered to pay the costs of the proceedings.