The Supreme Court of New South Wales (Slattery J) has delivered judgment in Gemi 193 Pty Ltd v Zhu [2024] NSWSC 1113, in which Andre Zahra SC appeared (leading James Lee of Tenth Floor Chambers and instructed by Amie Crichton and Joshua Carton) for the successful defendant, Mrs Zhu. Justice Slattery rejected financier Gemi’s claims against Mrs Zhu in relation to a loan agreement and guarantee procured from her, finding that Gemi’s conduct was unconscionable and that Mrs Zhu is entitled to relief setting aside the loan agreement and guarantee by reason of Gemi’s unconscionable conduct and also pursuant to s. 7 of the Contracts Review Act 1980 (NSW). The case demonstrates the sort of conduct by a lender which the courts will not condone and the risk of loan agreements, guarantees and securities being set aside when lenders obtain guarantees in that way.

See the full judgment here.