Thompson v Arbias Limited

In *Thompson v Arbias Limited*, the applicant, Ms. Thompson, sought to have a settlement agreement, entered into with the respondent, Arbias Limited, set aside. The dispute concerned the validity of this settlement agreement, which Ms. Thompson alleged was unconscionably obtained. The matter came before Judge A. Kelly.

The central legal issue before the court was whether the settlement agreement was voidable on the grounds of unconscionable conduct. This required the court to consider whether Ms. Thompson was under a special disadvantage, whether Arbias Limited knew or ought to have known of this disadvantage, and whether Arbias Limited unconscionably took advantage of that disadvantage in procuring the settlement.

Judge A. Kelly found that Ms. Thompson had established a special disadvantage due to her limited English proficiency and her lack of independent legal advice at the time of settlement. The court determined that Arbias Limited was aware of Ms. Thompson's difficulties in understanding the terms of the agreement and the implications of settling. Consequently, the court concluded that Arbias Limited had unconscionably exploited this vulnerability. The court held that the settlement agreement was therefore voidable at the instance of Ms. Thompson.

The court ordered that the settlement agreement be set aside.