De Baecque Johnsen Company Pty Ltd v JFS Hair Management Pty Ltd & Anor [2020] NSWDC 476

District Court New South Wales

Medium Neutral Citation: De Baecque Johnsen Company Pty Ltd v JFS Hair Management Pty Ltd & Anor [2020] NSWDC 476 Hearing dates: 13-14 and 21 May; 6-7 August 2020 Date of orders: 26 August 2020 Decision date: 26 August 2020 Jurisdiction: Civil Before: Smith SC, DCJ Decision: The orders of the Court are as follows: 1. Judgment for the plaintiff against the first and second defendants jointly and severally in the amount of $501,814.55. 2. The first and second defendants are to pay the plaintiff's costs on an indemnity basis. 3. That the monies held by the Court as security for costs pursuant to orders made on 7 June 2019 and 28 February 2020 be released forthwith to the trust account of the plaintiff's solicitor. Catchwords: CONTRACT – Authority to enter loan agreement – ostensible authority – implied actual authority – Corporations Act s 129 – liability of guarantor – fraudulent dealings – unpaid loan. Legislation Cited: Corporations Act 2001 (Cth), ss 127, 128, 129 Family Law Act 1975 (Cth), Pt VIII Statute of Frauds 1677, s 4 Cases Cited: Crabtree-Vickers Pty Ltd v Australian Direct Mail Advertising & Addressing Co Pty Ltd (1975) 133 CLR 72 Elpis Maritime Co Ltd v Marti Chartering Co Inc [1992] 1 AC 21 Flexirent Capital Pty Ltd v EBS Consulting Pty Ltd [2007] VSC 158 Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd (1964) 2 QB 480 Junker v Hepburn [2010] NSWSC 88 Left Bank Investments Pty Ltd v Ngunya Jarjum Aboriginal Corporation [2020] NSWCA 144 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 Re MF Global Australia Ltd (in liq); Hopper v Campbell [2015] NSWCSC 1409 Reade v Lowndes (1857) 23 Beav. 361; 53 ER 142 Zhang v BM Sydney Building Materials Pty Ltd [2016] NSWCA 166 Category: Principal judgment Parties: De Baecque Johnsen Company Pty Ltd as trustee for De Baecque Johnsen Trust – Plaintiff JFS Hair Management Pty Ltd – First Defendant Stephane Banasiak – Second Defendant Representation: Counsel: Mr E Thompson – Plaintiff Mr G Laughton SC – First Defendant Solicitors: Darley Legal – Plaintiff DC Strategy Lawyers – First Defendant File Number(s): 2019/47269 Publication restriction: Nil