24 May 2016
FAI MONEY LIMITED v CRAWLEY AND JOHNSTON [2016] NZCA 219
- Citation
- [2016] NZCA 219
- Court
- Court of Appeal
The trustees were negligent in both giving the inaccurate financial representation and in permitting the post-loan sale at an undervalue without lender consent; limitation clauses in the guarantees (cl 18.1.1 and 18.1.2) and loan agreement (cl 14.4) must be read in context and, in their natural meaning, protect trustees from personal liability for pre-loan misrepresentations but permit personal recourse where post-loan negligent acts by trustees diminish or destroy their indemnity from trust assets. Accordingly FAI recovers the loan against the trustees to the extent of trust assets for the p…