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18-047MR Full Federal Court partially upholds book up provider's appeal
On 15 February 2018, the Full Federal Court partially upheld an appeal by Mr Lindsay Kobelt, owner and operator of Nobby's Mintabie General Store in the remote South Australian APY Lands, against the decision of a single Judge of the Federal Court.
On 9 November 2016, the Federal Court at first instance found that:
- Mr Kobelt's system of providing book up was unconscionable; and
- Mr Kobelt had engaged in unlicensed credit activity when selling motor vehicles on book up (refer 16-383MR).
On appeal, the Full Federal Court upheld the original finding that Mr Kobelt engaged in unlicensed credit activity when selling motor vehicles on book up, but otherwise found that Mr Kobelt's system of providing book up was not unconscionable.
The matter has been adjourned to Tuesday 20 February 2018 at 2pm for submissions on final orders.
ASIC is considering the judgment.
On Tuesday 20 February 2018 the Federal Court made final orders. The orders can be downloaded here.
Editor's note 2:
On 20 March 2018 ASIC applied to the High Court of Australia for special leave to appeal from the orders made by the Full Court on 20 February 2018.
Editor's note 3:
On 17 August 2018, the High Court of Australia granted special leave to ASIC to appeal from the orders made by the Full Court on 20 February 2018.
Editor's note 4:
The hearing of the High Court appeal has been set down for 4 December 2018 at 10am.
Editor's note 5:
On 4 December 2018, ASIC’s appeal was heard before the Full Court of the High Court. The decision has been reserved. Mr Kobelt’s application for special leave to appeal the finding that he engaged in unlicensed credit activity was refused.