The appellant, a vulnerable young woman with a brain injury, took out litigation loans arranged by her personal injury law firm.
The lender was the lawyer's wife and an employee of the firm, but this was not disclosed to the appellant, nor was she advised to seek independent legal advice.
The motions judge granted summary judgment enforcing the loans.
On appeal, the Divisional Court set aside the summary judgment, finding the transactions unconscionable due to the imbalance of power, the lender's unfair advantage, and the improvident nature of the bargain.
The loan agreements were rescinded and the action dismissed.
