The court considered an application under the Unconscionable Transactions Relief Act to set aside litigation loan agreements entered into by Chadwick Randy Kelly (by his litigation guardian and attorney for property) with BridgePoint Financial Services Limited Partnership I. The loans, used to purchase and retrofit a home after a catastrophic injury, had grown to over $1.1 million due to compounding interest.
The applicants argued the loans were excessive, harsh, and unconscionable.
The court found that, given the risk profile, the lack of alternative financing, and the terms of the agreements, the loans were not excessive or unconscionable under the Act.
The application was dismissed and costs awarded to the respondent.