Gideon Rathner as trustee for Garland Lot 4 Unit Trust v Bartlett [2023] NSWSC 1026

Supreme Court New South Wales

Medium Neutral Citation: Gideon Rathner as trustee for Garland Lot 4 Unit Trust v Bartlett [2023] NSWSC 1026 Hearing dates: 31 July and 1 August 2023 Decision date: 29 August 2023 Jurisdiction: Equity Before: Ball J Decision: (1) The proceedings (including the amended cross-claim) are dismissed; (2) The plaintiff pay the defendants' costs of the proceedings. Catchwords: GUARANTEE AND INDEMNITY — Rights of guarantor against co-guarantors — Right to contribution — Whether payment made under guarantee — Whether parties had co-ordinate liabilities — Where guarantor provided mortgage in addition to guarantee — Mortgage discharged to minimise losses on project rather than under the guarantee — Liabilities not co-ordinate GUARANTEE AND INDEMNITY — Rights of guarantor against co-guarantors — Right to interest — Not affected by delay in bringing proceedings Legislation Cited: Bankruptcy Act 1966 (Cth) Cases Cited: Cockburn v GIO Finance Ltd (No 2) (2001) 51 NSWLR 624; [2001] NSWCA 177 Friend v Brooker (2009) 239 CLR 129; [2009] HCA 21 Global Consulting Services Pty Ltd v Gresham Property Investments Ltd (2018) 365 ALR 143; [2018] NSWCA 255 Mahoney v McManus (1981) 180 CLR 370; [1981] HCA 54 Moulton v Roberts [1977] Qd R 135 Official Trustee in Bankruptcy v Citibank Savings Ltd (1995) 38 NSWLR 116 Perri v Flavell (No 2) (Court of Appeal (NSW), Kirby P, Powell JA, 20 September 1995, unrep) Re Hayes; Ex parte Hayes (1996) 138 ALR 54 Re La Rosa; Ex parte Norgard v Rodpat Nominees Pty Ltd (1991) 31 FCR 83 at 91; 104 ALR 237 Steel v Dixon (1881) 17 Ch D 825 Stimpson v Smith [1999] Ch 340 Thomas v Nottingham Incorporated Football Club Ltd [1972] 1 Ch 596 Texts Cited: J O'Donovan and J Phillips, Modern Contract of Guarantee (4th ed, 2004, Lawbook Co, looseleaf) Category: Principal judgment Parties: Gideon Rathner as trustee for Garland Lot 4 Unit Trust (Plaintiff | First Cross Defendant) Philip Bartlett (First Defendant) Janet Pennington (Second Defendant) P&J Projects Pty Ltd (Third Defendant | Cross Claimant) Australian Securities & Investments Commission (Second Cross Defendant) Representation: Counsel: SA Lawrance SC with A Campbell (Plaintiff | First Cross Defendant) RC Scruby SC with J Anderson (Defendants | Cross Claimant)