ASB Bank Ltd v Harlick

The Harlicks daughter and son in law wished to purchase a bread run, and in order to get the loan from the ASB, the Harlick's went guarantors on the loan.

Later, the loan came into default, and the ASB pursued the Harlick's for the loan. The Harlick's applied to the High Court to have the ASB's mortgage over their house set aside on the grounds of unconscionability, and the court set aside the mortgage.

The ASB appealed.

The Court of Appeal ruled that the Harlick's had not suffered from any "material disadvantage or disability', one of the three crucial elements for unconscionable bargains. The Court restored the ASB's mortgage over their house.