Nashco Pty Ltd v Yang [2022] NSWCA 137

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Nashco Pty Ltd v Yang [2022] NSWCA 137 Hearing dates: 21 April 2022 Date of orders: 04 August 2022 Decision date: 04 August 2022 Before: Leeming JA at [1]; Brereton JA at [2]; Mitchelmore JA at [7] Decision: (1) Appeal allowed. (2) Set aside Orders 2, 3, 5 and 6 made by the primary judge on 25 August 2021. (3) In lieu thereof: (a) Judgment on the cross-claim against the first, second, third, fourth and fifth cross-defendants for $979,716.47 (including interest of $36,022.22), to take effect from 25 August 2021; (b) Order that the first, second, third, fourth and fifth cross-defendants pay the cross-claimant's costs of the cross-claim on the ordinary basis up to and including 29 January 2020, and on an indemnity basis thereafter. (4) The respondents pay the appellant's costs of the appeal. (5) Reserve liberty to apply within 14 days for different orders as to costs in relation to the proceedings below and the appeal. Catchwords: GUARANTEE – contract of guarantee – construction – where respondents executed guarantee in favour of partnership "and its successors and assigns" – where partnership subsequently incorporated and assigned business to company – whether company could rely on guarantee to recover payments respondents owed for goods supplied after assignment Cases Cited: Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570; [2008] HCA 57 Andar Transport Pty Ltd v Brambles Ltd (2004) 217 CLR 424; [2004] HCA 28 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549; [1987] HCA 15 Backhouse v Hall (1865) 6 B & S 507 Barclay v Lewis (1783) 3 Dougl 32 Bofinger v Kingsway Group Ltd (2009) 239 CLR 269; [2009] HCA 44 Bradford Old Bank v Sutcliffe [1918] 2 KB 833 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Coghlan v S H Lock (Aust) Ltd (1987) 8 NSWLR 88 CSR Limited v Adecco (Australia) Pty Ltd [2017] NSWCA 121 Dance v Girdler (1804) 1 Bos & P 34; (1804) 127 ER 370 Davis v Commissioner for Main Roads (1968) 117 CLR 529 at 534; [1968] HCA 10 Erect Safe Scaffolding (Australia) Pty Ltd v Sutton (2008) 72 NSWLR 1; [2008] NSWCA 114 First National Finance Corporation v Goodman [1983] BCLC 203 Gardiner v Agricultural and Rural Finance Pty Ltd [2007] NSWCA 235 Halford v Price (1960) 105 CLR 23; [1960] HCA 38 Housing Guarantee Fund Ltd v Yusef [1991] 2 VR 17 Pacific Brands Sport & Leisure Pty Ltd v Underworks (2006) 149 FCR 395; [2006] FCAFC 40 Rava v Logan Wines Pty Ltd [2007] NSWCA 62 Reardon Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 Wheatley v Bastow (1855) 44 ER 102 Texts Cited: W Courtney, J Phillips, and J O'Donovan, The Modern Contract of Guarantee: English Edition (4th ed, 2020, Sweet & Maxwell) Category: Principal judgment Parties: Nashco Pty Ltd (Appellant) Tun Yang (First Respondent) Yingjia Fu (Second Respondent) Yihim Zheng (Third Respondent) Lui Yin Ko (Fourth Respondent Representation: Counsel: J Sleight (Appellant) A Macauley / S Murray (Respondents)