MacDonald v Yakiti Pty Ltd

The appellant, MacDonald, brought proceedings against the respondents, Yakiti Pty Ltd and others, alleging unconscionable conduct in contravention of sections 12CA and 12CB of the *Australian Securities and Investments Commission Act 2001* (Cth). The dispute arose from negotiations concerning a property transaction, during which the appellant was admitted to hospital. The appellant contended that the respondents took unconscientious advantage of his disabling condition.

The primary legal issues before the Court of Appeal were whether the respondents engaged in unconscionable conduct by exploiting the appellant's hospitalisation and subsequent inability to participate fully in negotiations, and whether, pursuant to section 12GM(7) of the *Australian Securities and Investments Commission Act 2001* (Cth), the appellant had suffered any compensable loss as a result of such conduct.

The Court of Appeal considered the evidence regarding the appellant's condition and his exclusion from crucial negotiations. It applied the principles governing unconscionable conduct, focusing on whether the respondents' actions were unconscientious and whether they exploited a special disadvantage of the appellant. The Court found that the appellant had not established the necessary elements to prove unconscionable conduct or that he had suffered any loss that was compensable under the Act.

Consequently, the appeal was dismissed with costs.