Crawford v Demertjis & Ruhs Pty Ltd [2024] NSWSC 48

Supreme Court New South Wales

Medium Neutral Citation: Crawford v Demertjis & Ruhs Pty Ltd [2024] NSWSC 48 Hearing dates: 31 January 2024 Decision date: 06 February 2024 Jurisdiction: Common Law Before: Adamson JA Decision: (1) Grant leave to appeal. (2) Dismiss the amended summons and the appeal. (3) Order the plaintiff to pay the defendant's costs. Catchwords: APPEALS — leave to appeal — whether leave required — whether grounds of appeal contain question of mixed fact and law — principles governing grants of leave to appeal — leave to appeal granted CORPORATIONS — effect of deregistration of lessee on obligations of indemnifier under lease — whether reinstatement of lessee a necessary pre-condition to recovery against the indemnifier LEASES AND TENANCIES — lease term — expiration of lease — whether lease terminates upon deregistration of lessee — operation of holding over provision where lessee is deregistered — automatic renewal of lease where notice to terminate is not provided in accordance with terms of the lease GUARANTEE AND INDEMNITY — scope of liability of guarantor/indemnifier — construction — guarantee of lessee's obligations under a lease — whether guarantee also contained an indemnity — whether the guarantor assumed primary liability — whether guarantor could be held liable following deregistration of lessee — commercial purpose of the guarantee Legislation Cited: Companies (New South Wales) Code, ss 381, 382, 458 Corporations Act 2001 (Cth), ss 459P, 462, 601AD, 601AH Local Court Act 2007 (NSW), ss 29, 39, 40 Uniform Civil Procedure Rules 2005 (NSW), r 42.1 Cases Cited: Be Financial Pty Ltd as trustee for Be Financial Operations Trust v Das [2012] NSWCA 164 Canty v PaperlinX Australia Pty Ltd [2014] NSWCA 309 Electricity Generation Corporation v Woodside Energy Ltd; Woodside Energy Ltd v Electricity Generation Corporation (2014) 251 CLR 640; [2014] HCA 7 Gallagher Bassett Services NSW Pty Ltd v Murdock (2013) 86 NSWLR 13; [2013] NSWCA 386 GIO General Ltd (Agent for NSW Workcover Scheme) v Sabko Pty Ltd (2007) 70 NSWLR 743; [2007] NSWSC 251 In the matter of BMT & Associates Pty Ltd [2014] NSWSC 1082 Partners v Sampson [2002] NSWSC 383 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14 R v PL [2009] NSWCCA 256; (2009) 199 A Crim R 199 Re Austral Family Homes Pty Ltd (in liq) (1992) 28 NSWLR 247 Re Morton; Ex parte Mitchell Products Pty Ltd [1996] FCA 828; (1996) 21 ACSR 497 Re Silverline Technologies Pty Ltd (In Liq) [2005] NSWSC 620; (2005) 192 FLR 261 Sweeney & Vandelaur Pty Ltd v BNY Australia Ltd (1993) 11 ACSR 356 Williams v The Queen (1986) 161 CLR 278; [1986] HCA 88 Category: Principal judgment Parties: Michael Crawford (Plaintiff) Demertjis & Ruhs Pty Ltd (Defendant) Representation: Counsel: J Pokoney (Plaintiff) B Smith (Defendant)