Court should examine all terms for fairness

A recent case heard in the ECJ states that courts have a duty under the Unfair Terms in Consumer Contracts Directive to assess all terms in a contract for fairness, even if one specific term has already been considered in court. In a case referred by a Spanish Court, the ECJ held that, although a court had already ruled in favour of a consumer in relation to one term of a mortgage contract (that the default interest clause was unfair), this did not preclude a court from examining of its own motion the terms of a contract as a whole.