4.2.5 Unconscionable Conduct or Disproportionate Harshness.

• Jurisdiction: Arizona

The principal Arizona case is Ariz. Coffee Shops v. Phoenix Downtown Parking Ass’n, 95 Ariz. 98, 387 P.2d 801 (1963) (holding that unconscionable conduct of the lender will support a valid defense to a foreclosure). The borrower’s bookkeeper was ill and inadvertently failed to make a small mortgage payment. The mortgagee was allegedly aware of the bookkeeper’s illness, and even conversed with the debtor after the due date for the payment had passed, but said nothing about it. There had been no prior breach...