27 Sept 2016
REAL FINANCE LIMITED v SETEFANO [2016] NZHC 2293
- Citation
- [2016] NZHC 2293
- Court
- High Court
The High Court held that s 120 empowers a court to reopen a credit contract on its own motion in any proceedings before it where the court considers the contract is oppressive; s 125 governs who may commence standalone reopening proceedings and their time limits but does not preclude the court acting on its own initiative in other proceedings. The power must be exercised cautiously and only in the clearest cases, and a creditor must be given the opportunity to adduce evidence before the contract is reopened. The District Court's decision to disallow the monthly administration fees without giv…