Torrag Pty Ltd v Lydboots Pty Ltd and Petcure Pty Ltd

The Supreme Court of Victoria, presided over by Ian Thompson, considered a dispute between Torrag Pty Ltd (the applicant) and Lydboots Pty Ltd and Petcure Pty Ltd (the respondents). The core of the disagreement concerned the validity of a deed of settlement and release, which Torrag sought to have set aside. Torrag alleged that the deed was entered into under duress and undue influence, and that it was unconscionable.

The primary legal issues before the court were whether the deed of settlement and release was voidable on the grounds of duress, undue influence, or unconscionability. Specifically, the court had to determine if Torrag's will was overborne by illegitimate pressure, or if there was an unconscionable dealing arising from a position of disadvantage and exploitation.

In its reasoning, the court analysed the principles of duress, undue influence, and unconscionability under Australian contract law. It considered the nature of the pressure exerted, the relationship between the parties, and the fairness of the transaction. The court found that the evidence did not establish that Torrag's consent to the deed was vitiated by duress or undue influence. Furthermore, the court concluded that the circumstances did not give rise to an unconscionable dealing, finding that Torrag was not in a position of relevant disadvantage, nor had the respondents exploited any such disadvantage.

Consequently, the court dismissed Torrag's application to set aside the deed of settlement and release.