Wittmann (UK) Ltd v Willdav Engineering SA

Wittmann (UK) Ltd v Willdav Engineering SA

The guarantee executed by Willdav Engineering S.A. remained effective to cover Automold’s residual liability for the purchase price of goods supplied by Wittmann (UK) Limited, notwithstanding the financing arrangements with third-party finance companies. The original obligation was not wholly discharged but merely reduced by the sums paid by the finance companies, and the guarantee continued to apply to the outstanding balance. The guarantee’s terms and the parties’ knowledge and intentions supported this construction. The appeal was therefore dismissed.

Parties
Claimant/respondent: Wittmann (UK) Limited; Defendant/appellant: Willdav Engineering S.A.
Jurisdiction
England and Wales
Judgment Date
31 July 2007
Procedural Posture
Civil Appeal / Appeal From High Court (mercantile List) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Guarantee Liability, Variation of Contract, Discharge of Surety, Financing Arrangements, Statute of Frauds
Contract Law Guarantee/suretyship Guarantee Liability Variation of Contract Discharge of Surety Financing Arrangements Statute of Frauds

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Parties

Wittmann (UK) Limited

Claimant/respondent

Willdav Engineering S.A.

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (mercantile List) to Court of Appeal

Legal Issues

  1. 1 Whether the guarantee executed by Willdav Engineering S.A. extended to Automold’s residual liability after financing arrangements with third-party finance companies altered the original contract structure.
  2. 2 Whether the original contract was discharged and replaced by new contracts outside the scope of the guarantee.
  3. 3 Whether Willdav’s knowledge or consent to the financing arrangements affected its liability under the guarantee.

Ratio Decidendi

The guarantee executed by Willdav Engineering S.A. remained effective to cover Automold’s residual liability for the purchase price of goods supplied by Wittmann (UK) Limited, notwithstanding the financing arrangements with third-party finance companies. The original obligation was not wholly discharged but merely reduced by the sums paid by the finance companies, and the guarantee continued to apply to the outstanding balance. The guarantee’s terms and the parties’ knowledge and intentions supported this construction. The appeal was therefore dismissed.

Court Disposition

Appeal dismissed

Orders

  • Judgment for Wittmann (UK) Limited for the outstanding sum under the guarantee.
  • Willdav Engineering S.A. remains liable for Automold’s residual liability under the guarantee.