Gadens acted for the Australian Securities and Investments Commission (ASIC) in long-running litigation against SunshineLoans, a case that has tested key provisions of Australia's consumer credit laws and clarified important principles governing judicial recusal.

The proceedings arose from ASIC's COVID-19-era surveillance of the payday lending industry and tested provisions of the National Consumer Credit Protection Act 2009 that had not previously been considered by the courts. ASIC secured declarations that SunshineLoans breached the legislation and obtained injunctive relief. ASIC is also pursuing a significant civil penalty.

Gadens advised ASIC throughout the proceedings, including multiple appeals and issues with broader implications for regulatory enforcement in Australia.

Lead Partner Scott Couper said:

“This litigation addressed important questions about regulatory enforcement and judicial recusal. The High Court's decision provides clear guidance for regulators, courts and litigants, and will shape how these issues are approached in future proceedings.”

In a unanimous decision, the High Court dismissed SunshineLoans' appeal concerning a judicial recusal ruling. The decision provides authoritative guidance on when a judge may be disqualified from hearing a civil penalty case and is expected to have broader implications for regulatory and civil penalty proceedings across Australia.