K & B Trading Pty Ltd v Riverina Hay Pty Ltd (Receiver and Manager Appointed) [2020] NSWSC 1257

K & B Trading Pty Ltd v Riverina Hay Pty Ltd (Receiver and Manager Appointed) [2020] NSWSC 1257

The loan documents, guarantees and evidence established on the balance of probabilities that the first and fourth defendants entered the relevant agreements and defaulted, and that the second and third defendants personally guaranteed the liabilities. The defendants' contention that the value of secured assets extinguished the debt was unsustainable because the evidence showed the Murrami property could not be sold for enough to discharge even the principal owing on the Riverina Hay loan. The claimed interest, foreign exchange loss and receivership costs were supported by the loan documents and evidence, but indemnity costs were not justified because the defendants did not cause delay and...

Jurisdiction
Australia
Judgment Date
16 September 2020
Procedural Posture
Money Claim for Amounts Owing Under Loan Deeds, Guarantees and Related Securities / Principal Judgment After Hearing Where Defendants Did Not Appear
Outcome
Judgment entered for the plaintiff against the defendants for principal, interest, foreign currency exchange losses, receiver and manager fees and disbursements, and costs on the ordinary basis.
Legal Topics
['loan Deeds' 'personal Guarantees' 'default Interest' 'receiver and Manager Costs' 'mortgage Security' 'costs on Ordinary Basis']
['civil Procedure' 'contract Law' 'corporations' 'secured Lending'] ['loan Deeds' 'personal Guarantees' 'default Interest' 'receiver and Manager Costs' 'mortgage Security' 'costs on Ordinary Basis']

Case Brief

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Procedural Posture

Money Claim for Amounts Owing Under Loan Deeds, Guarantees and Related Securities / Principal Judgment After Hearing Where Defendants Did Not Appear

Legal Issues

  1. 1 ['Whether the defendants owed or were liable for the monies loaned to the first and fourth defendants by the plaintiff in the amounts claimed.' 'Whether the calculation of interest, fees and disbursements should be accepted.' 'Whether the value of assets controlled or realised by the plaintiff or receiver extinguished any subsisting debt.' 'Whether costs should be awarded on an indemnity basis or ordinary basis.']

Ratio Decidendi

The loan documents, guarantees and evidence established on the balance of probabilities that the first and fourth defendants entered the relevant agreements and defaulted, and that the second and third defendants personally guaranteed the liabilities. The defendants' contention that the value of secured assets extinguished the debt was unsustainable because the evidence showed the Murrami property could not be sold for enough to discharge even the principal owing on the Riverina Hay loan. The claimed interest, foreign exchange loss and receivership costs were supported by the loan documents and evidence, but indemnity costs were not justified because the defendants did not cause delay and...

Court Disposition

Judgment entered for the plaintiff against the defendants for principal, interest, foreign currency exchange losses, receiver and manager fees and disbursements, and costs on the ordinary basis.

Orders

  • ['Judgment for the plaintiff against the first defendant in the sum of $1,949,662.66 and foreign currency exchange rate losses in the sum of $21,032.64.' 'The first defendant is to pay the plaintiff interest in the sum of $881,354.35 being the interest calculated in accordance with clauses 3.2(a) and 3.2(f) of the...