Capitalink Pty Ltd v Withnall (No.2) [2023] NSWDC 547

District Court New South Wales

Medium Neutral Citation: Capitalink Pty Ltd v Withnall (No.2) [2023] NSWDC 547 Hearing dates: 30 November 2023, 1 December 2023 Date of orders: 7 December 2023 Decision date: 07 December 2023 Jurisdiction: Civil Before: Abadee DCJ Decision: See paragraph [189] Catchwords: GUARANTEES – arrangement (by deed) between land owner and construction company to complete construction of partially constructed townhouses – defendant was party to arrangement as guarantor - whether guarantee void or unenforceable for want of consideration – whether guarantee void for uncertainty in identifying co-sureties - whether guarantee discharged by variation to contract – whether guarantee discharged by land owner's termination of contract with construction company for the latter's breach CORPORATIONS – an entity different to the land owner pays costs to complete development and is expected to pay future costs – whether land owner entitled to recover expenses that were paid by the different entity DAMAGES – whether delay damages clause limited land owner recovery of further damages – whether failure by land owner to mitigate – whether rent received from tenants in occupation of townhouses to be treated as collateral benefit in reducing damages. EVIDENCE – whether opinion in a business record was admissible as an exception to hearsay rule – whether Jones v Dunkel defence drawn from defendant's failure to give evidence relating to issue of the identity of co-sureties. Legislation Cited: Civil Procedure Act 2005 (NSW), s 56, s 100 Corporations Act 2001 (Cth), s 127 Cases Cited: Ankar Pty Ltd v Westminster Finance Australia (1987)162 CLR 549 Carminco Gold & Resources Ltd v Findlay & Co Stockbrokers (Underwriters) Pty Ltd (2007) 243 ALR 472 Chandrasekeran v Western Sydney Local Health District [2023] NSWCA 288 Commonwealth v Amann Aviation (1992) 174 CLR 64 Eppinga v Kalil [2023] NSWCA 287 Herron v HarperCollins Publishers Australia Pty Ltd (2022) 292 FCR 336 Industrial Equity Ltd v Blackburn (1977) 137 CLR 567 Jin Resources (Aus) Pty Ltd & Ors v Steven Nicols & Anor [2022] QSC 158\ Lang v R [2023] HCA 29 Lederberger v Mediterranean Olives Financial Pty Ltd (2012) 38 VR 509 Matouk v The Entrance Seabreeze Pty Ltd [2010] NSWSC 649 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 National Insurance Co of NZ Ltd v Espagne (1961) 105 CLR 569 Pico Holdings Inc v Wave Vistas Pty Ltd (Formerly Turf Club Australia Pty Ltd) (2005) 79 ALJR 825 Saloman v Saloman & Co Ltd [1897] AC 22 Schellenberg v Tunnel Holdings (2000) 200 CLR 1 State of New South Wales v Stevens [2012] nswca 415 Upper Hunter County District Council v Australian Chilling & Freezing Co (1968) 118 CLR 429 Walker v Wimborne (1976) 137 CLR 1 Texts Cited: J O'Donovan and J Phillips, The Modern Contract of Guarantee (Thomson Reuters, now in its online version) J.D Heydon, Heydon on Contract (2019, Thomas Reuters) at [5.100]. G Andrews & R Millett, Law of Guarantees (Sweet & Maxwell, sixth ed, 2011) Category: Principal judgment Parties: Capitalink Pty Ltd (ACN 602 481 685) (plaintiff) Marc Douglas Withnall (defendant) Representation: Counsel: M. Fernandes (plaintiff) M. Connor (defendant)