In brief - Court of Appeal stresses unconscionability factor in
equitable setoff
The NSW Court of Appeal's decision in
Hawes v Dean [2014] NSWCA 380 shows that equitable
set-off requires a connection between adverse parties' claims
which would make it unconscionable for one party to insist on its
legal right without first accommodating the other party's
countervailing legal rights.
Did judge err in ordering equitable set-off between
parties' liabilities?
In August 2014, in the case of Hawes v Dean, the NSW
Court of Appeal was asked to look at (among other things) whether
the primary judge erred when he ordered an equitable set-off
between the liabilities of two parties.
From about 1988, Mr David Hawes and Mr Trevor Dean undertook a
number of property development ventures together. Each used certain
corporate vehicles which ensured that independence was maintained,
except to the extent that specific contracts were entered into from
time to time in relation to
