White & Ors. v. Cariste Pty. Ltd. [2004] NSWCA 460

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

1. 1 ['Whether the guarantee provided in a lease by directors of the lessee company applies to obligations arising after expiration of the lease and during holding over or periodic tenancy, particularly where rent and outgoings have changed following new arrangements.' 'Whether a new lease or periodic tenancy was created after negotiations and arrangements about rent and premises post-expiry, displacing the holding-over provisions of the original lease.']

Ratio Decidendi

The obligations of Surtec to pay rent at the revised rate and outgoings as agreed from March 1992 onwards arose from a new arrangement amounting to a periodic tenancy, not from the original lease or holding-over provision. The guarantee provided by the directors applied only to obligations arising under the lease, not those under the periodic tenancy or new demise. Consequently, the guarantors were not liable to Cariste for amounts accruing after March 1992 under the new rental arrangement.

Court Disposition

Appeals allowed

Orders

• ['Appeal by Mr. White allowed.' 'Appeal by Mr. and Mrs. Court allowed.' "Cariste to pay Mr. White and Mr. and Mrs. Court's costs of the appeal, and to have a Suitors' Fund certificate if otherwise eligible." "Judgments against Mr. White and Mr. and Mrs. Court below set aside, and in lieu thereof judgments for Mr....