Trent v Bolton [2019] NSWDC 853

Trent v Bolton [2019] NSWDC 853

The plaintiffs and defendants were co-guarantors under the same Guarantee and Indemnity for AJ Roberts Removals and Storage Pty Ltd's obligations to NAB. The asserted finance approval conditions were not terms of the Guarantee and could not defeat the plaintiffs' right to contribution. The plaintiffs' payment of $104,757.09 to NAB enlivened a right to contribution, but the defendants established a set-off for their repayment of a $43,000 NAB loan, giving a credit of $21,500. Their other asserted payments or losses were not proved to be payments by them under a co-ordinate liability or otherwise did not give rise to a claim against the plaintiffs. The plaintiffs were therefore entitled to...

Jurisdiction
Australia
Judgment Date
11 December 2019
Procedural Posture
Civil Claim for Contribution Between Co Guarantors With Cross Claim and Set Off / Principal Judgment After Hearing
Outcome
Judgment for the plaintiffs against the defendants in the sum of $32,537.53; cross-claim otherwise dismissed.
Legal Topics
['contract of Guarantee' 'co Guarantors' 'contribution' 'set Off' 'limitation' 'costs']
['guarantee and Indemnity' 'equity' 'civil Procedure'] ['contract of Guarantee' 'co Guarantors' 'contribution' 'set Off' 'limitation' 'costs']

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Procedural Posture

Civil Claim for Contribution Between Co Guarantors With Cross Claim and Set Off / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether the asserted conditions of registration, formation balance sheets, cash flow forecasts and two key person insurance policies were conditions of the guarantee.' "Whether payments for repayment of a loan to NAB, payments to MLC Life Insurance, a director's loan, difference in director's wages, unpaid rent by the yard owner, loss of sale of containers and other matters gave rise to a contribution claim or set-off."]

Ratio Decidendi

The plaintiffs and defendants were co-guarantors under the same Guarantee and Indemnity for AJ Roberts Removals and Storage Pty Ltd's obligations to NAB. The asserted finance approval conditions were not terms of the Guarantee and could not defeat the plaintiffs' right to contribution. The plaintiffs' payment of $104,757.09 to NAB enlivened a right to contribution, but the defendants established a set-off for their repayment of a $43,000 NAB loan, giving a credit of $21,500. Their other asserted payments or losses were not proved to be payments by them under a co-ordinate liability or otherwise did not give rise to a claim against the plaintiffs. The plaintiffs were therefore entitled to...

Court Disposition

Judgment for the plaintiffs against the defendants in the sum of $32,537.53; cross-claim otherwise dismissed.

Orders

  • ['Judgment for the plaintiffs against the defendants in the sum of $32,537.53.' 'Cross-claim otherwise dismissed.' 'Any application in respect of a costs order must be notified by email to my associate by noon on Friday, 20 December 2019, and indicate the costs order sought.']