National Merchant Buying Society Ltd v Bellamy & Anor [2013] EWCA Civ 452 (02 May 2013)

National Merchant Buying Society Ltd v Bellamy & Anor [2013] EWCA Civ 452 (02 May 2013)

The guarantee was a freestanding 'all moneys' guarantee covering all sums due or to become due from CTF, not limited by any credit limit or by the terms of the underlying contract; variations in credit limit and liabilities incurred for supplies to Midlands did not discharge the appellant from liability under the guarantee.

Citation
[2013] EWCA Civ 452
Parties
Claimant/respondent: National Merchant Buying Society Limited; First Defendant: Andrew Bellamy; Second Defendant/appellant: Stephen Mallett
Jurisdiction
England and Wales
Judgment Date
02 May 2013
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Interpretation of Guarantees, Discharge of Surety, Variation of Contract, All Moneys Guarantee
Contract Law Guarantee Law Interpretation of Guarantees Discharge of Surety Variation of Contract All Moneys Guarantee

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 9 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

National Merchant Buying Society Limited

Claimant/respondent

Andrew Bellamy

First Defendant

Stephen Mallett

Second Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the appellant was discharged from liability under his guarantee due to variations in the contract between creditor and principal debtor
  2. 2 Whether the guarantee was limited by the credit limit known to the guarantor at the time of execution
  3. 3 Whether liabilities incurred for supplies to an associated company (Midlands) discharged the guarantee

Ratio Decidendi

The guarantee was a freestanding 'all moneys' guarantee covering all sums due or to become due from CTF, not limited by any credit limit or by the terms of the underlying contract; variations in credit limit and liabilities incurred for supplies to Midlands did not discharge the appellant from liability under the guarantee.

Court Disposition

Appeal dismissed

Orders

  • Mr Mallett remains liable for the sums claimed by the Society under the guarantee
  • Judgment against Mr Mallett for £331,627.26 plus interest and costs