Kantfield Pty Ltd v Johnson [2016] FCA 1588

Kantfield Pty Ltd v Johnson [2016] FCA 1588

Johnson was liable under both guarantees for the full amount less set-off; Wakelam was liable for the imprest sum under the first guarantee, but not for post-June 2014 debts, as the first guarantee did not extend to those debts due to the termination/creation of a new credit agreement and guarantee.

Parties
Applicant: Kantfield Pty Ltd; First Respondent: Norman Johnson; Second Respondent: Peter Wakelam
Jurisdiction
Australia
Judgment Date
23 December 2016
Procedural Posture
Commercial Contract Dispute / Final Judgment
Outcome
Judgment in favour of applicant against first and second respondents for specified amounts, with stays and costs orders.
Legal Topics
Guarantees and Indemnities, Imprest Arrangements, Misleading or Deceptive Conduct, Australian Consumer Law
Contracts Banking and Finance Commercial Law Guarantees and Indemnities Imprest Arrangements Misleading or Deceptive Conduct Australian Consumer Law

Case Brief

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Parties

Kantfield Pty Ltd

Applicant

Norman Johnson

First Respondent

Peter Wakelam

Second Respondent

Procedural Posture

Commercial Contract Dispute / Final Judgment

Legal Issues

  1. 1 Whether directors of manufacturer liable under guarantee and indemnity
  2. 2 Whether subsequent guarantee and indemnity replaced earlier guarantee and indemnity
  3. 3 Whether imprest debt owed under guarantee and indemnity

Ratio Decidendi

Johnson was liable under both guarantees for the full amount less set-off; Wakelam was liable for the imprest sum under the first guarantee, but not for post-June 2014 debts, as the first guarantee did not extend to those debts due to the termination/creation of a new credit agreement and guarantee.

Court Disposition

Judgment in favour of applicant against first and second respondents for specified amounts, with stays and costs orders.

Orders

  • Judgment against first respondent for $252,303 plus statutory interest of $40,828.16.
  • First respondent to pay applicant's costs, taxed in default of agreement, on indemnity basis after 11am on 21 June 2016.