FJ & SM Monaghan Pty Ltd v Slade [2018] NSWCA 79

FJ & SM Monaghan Pty Ltd v Slade [2018] NSWCA 79

The guarantee covers the balance from time to time on the running account, including agreed charges for interest, as commercial reality and extrinsic evidence show this was the understood subject matter of the guarantee.

Jurisdiction
Australia
Judgment Date
18 April 2018
Procedural Posture
Appeal / Court of Appeal – Judgment
Outcome
Appeal allowed; orders varied.
Legal Topics
['construction of Guarantees' 'use of Extrinsic Evidence' 'scope of Guarantee Covering Interest' 'continuing Guarantee' 'debt From Time to Time']
['guarantee and Indemnity' 'contract Law'] ['construction of Guarantees' 'use of Extrinsic Evidence' 'scope of Guarantee Covering Interest' 'continuing Guarantee' 'debt From Time to Time']

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Procedural Posture

Appeal / Court of Appeal – Judgment

Legal Issues

  1. 1 ['Whether the guarantee covered interest on unpaid balance' 'Whether the guarantee covered amount outstanding on date of guarantee or thereafter from time to time']

Ratio Decidendi

The guarantee covers the balance from time to time on the running account, including agreed charges for interest, as commercial reality and extrinsic evidence show this was the understood subject matter of the guarantee.

Court Disposition

Appeal allowed; orders varied.

Orders

  • ['Appeal allowed.' 'Order 2 made by the District Court on 9 June 2017 (verdict for the second and third defendants) set aside; verdict and judgment for plaintiff against second and third defendants in sum of $750,000, effective 9 June 2017.' "Order 2 made by District Court on 11 July 2017 (plaintiff to pay 20% of...