Schultz, Raymond Leslie v Renato Bruno Perillo and Wendy Winnifred Perillo; Renato Bruno Perillo and Wendy Winnifred Perillo v Kaybank Pty Ltd (ACN 008 431 650), Greg Jolly, Raymond Leslie Schultz

The case before the Supreme Court of Queensland involved two actions, nos. 1568 and 1571 of 1994, which were heard together. The parties involved were Raymond Leslie Schultz, Renato Bruno Perillo, Wendy Winnifred Perillo, Kaybank Pty Ltd, and Greg Jolly. The issues arose from two deeds executed in 1990 and 1991, which dealt with debts and assignments of those debts. The central dispute was whether Schultz could enforce a charge on the proceeds of the Perillos’ claims for damages for personal injuries.

The court had to decide whether the deeds were enforceable given the Perillos' significant cognitive impairments following a motor vehicle accident. The Perillos argued that the deeds were void or voidable due to their disabilities and lack of understanding at the time of execution. Schultz, on the other hand, claimed that the assignment was valid and enforceable.

The court found that the Perillos likely did not understand the deeds when they executed them, given their severe cognitive impairments and lack of legal advice. Mr. Jolly was aware of the Perillos' disabilities and financial difficulties. The court concluded that the transaction was unfair and unconscionable due to the special disability of the Perillos, which Mr. Jolly was aware of. The assignment also lacked consideration and was champertous, meaning it was void. Therefore, Schultz's claim was dismissed, and the Perillos were granted relief as sought in their counter-claims.