A cross-claim alleging misleading or deceptive or unconscionable conduct that merely contributed to a defendant's general inability to pay the plaintiff's claim does not establish a sufficient connection to found a defence of equitable set-off. The cross-claim must impeach or go to the root of the plaintiff's title to sue — for example, by showing the impugned conduct induced entry into the contract, induced the specific purchases, or affected the defendant's ability to realise the value of the goods supplied.
The full text is available to signed-in members, including the 1 later case that cites this judgment.