Taylor Square TT Pty Ltd v Kinselas Pty Ltd (No 2) [2024] NSWSC 987

Supreme Court New South Wales

Medium Neutral Citation: Taylor Square TT Pty Ltd v Kinselas Pty Ltd (No 2) [2024] NSWSC 987 Hearing dates: 15 July 2024 Date of orders: 9 August 2024 Decision date: 09 August 2024 Jurisdiction: Equity - Expedition List Before: Rees J Decision: Orders for specific performance against guarantor. Catchwords: GUARANTEES – principles of construction at [20]-[30] – contra proferentem rule not relevant where no suggested ambiguity – contract for sale of land and businesses in Darlinghurst for $61 million – purchasers are special purchase vehicles with $20 issued share capital – "prompt performance" of "all" purchasers' obligations guaranteed by director and shareholder of special purchase vehicles – purchasers failed to complete or comply with an order for specific performance – whether guarantor undertook to perform principal's obligation if the principal did not. SPECIFIC PERFORMANCE – whether orders for specific performance should be made against guarantor – Ryan v UPG 322 Pty Ltd [2023] NSWSC 1293 considered – quia timet relief available. WORDS AND PHRASES – "obligation to pay money" at [39]. Cases Cited: Andar Transport Pty Ltd v Brambles Ltd [2004] HCA 28 Ankar Pty Ltd & Arnick Holdings Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549 Bijkerk Investments Pty Ltd v Bikic [2020] NSWSC 1336 Bofinger v Kingsway Group Ltd (2009) 239 CLR 269 Canty v Paperlinx Australia Pty Ltd [2014] NSWCA 309 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544 Fairborne Pty Ltd v Strata Store Noosa Pty Ltd [2009] QSC 250 Foran v Wight (1989) 168 CLR 385; 88 ALR 413 Frankcombe v Foster Investments Pty Ltd [1978] 2 NSWLR 41 Friend v Brooker (2009) 239 CLR 129 Jowitt v Callaghan (1938) 38 SR (NSW) 512 Laundy Hotels (Quarry) Pty Ltd v Dyco Hotels Pty Ltd [2023] HCA 6 Lavin v Toppi (2015) 254 CLR 459 Lee v ATL Australia Pty Ltd [2023] NSWCA 327 Mahoney v Lindsay (1980) 33 ALR 601 Moschi v Lep Air Services Ltd [1973] AC 331 Paolucci v Makedyn Pty Ltd (2021) 20 BPR 41,749 Rava v Logan Wines Pty Ltd [2007] NSWCA 62 Ryan v UPG 322 Pty Ltd [2023] NSWSC 1293 Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR 245 Taylor Square TT Pty Ltd v Kinselas Pty Ltd [2024] NSWSC 799 Waterways Authority of New South Wales v Coal & Allied (Operations) Pty Ltd [2007] NSWCA 276 Texts Cited: JW Carter, Contract Law in Australia (LexisNexis Butterworths, 8th Edition, 2023) JW Carter and JC Phillips, "The Liability of Debtors and Guarantors under Contracts Discharged for Breach" (1992) 22 Western Australian Law Review 338 JW Carter, Carter's Breach of Contract (2nd ed, 2018, LexisNexis) M P Ellinghaus, "Essentials of the Modern Law of Guarantees" (1989) 2(2) Corporate & Business Law Journal 144 Mick Woodley (ed), Osborn's Concise Legal Dictionary (12th ed, 2013, Sweet & Maxwell) Category: Principal judgment Parties: Taylor Square TT Pty Ltd (First Plaintiff) Taylor Square Fund Pty Ltd (Second Plaintiff) Kinselas Pty Ltd (First Defendant) Kinselas Management Pty Ltd (Second Defendant) The Courthouse (NSW) Pty Ltd (Third Defendant) The Courthouse Management Pty Ltd (Fourth Defendant) Mark Toma (Fifth Defendant) Representation: Counsel: R Scruby SC / T Boyle (Plaintiffs) M Pesman SC / DA Allen (Defendants)