PROSILIS v DOUBLE BAY NEWSPAPERS PTY LTD [2000] NSWCA 30

New South Wales Court of Appeal

CITATION : PROSILIS v DOUBLE BAY NEWSPAPERS PTY LTD [2000] NSWCA 30 FILE NUMBER(S) : CA 40407/98 HEARING DATE(S) : 3 December 1999 JUDGMENT DATE : 9 March 2000

PARTIES : OVID PROSILIS v DOUBLE BAY NEWSPAPERS PTY LTD & 3 ORS JUDGMENT OF : Mason P at 1; Priestley JA at 50; Beazley JA at 51

LOWER COURT JURISDICTION : District Court LOWER COURT DC 5780/95 FILE NUMBER(S) : LOWER COURT Herron DCJ JUDICIAL OFFICER :

COUNSEL : Appellant: S Habib Respondent: M J Neil QC/R Bell SOLICITORS : Appellant: Photios Vouroudis & Co Respondent: David R Purvis & Co CATCHWORDS : Contract - loan agreement - guarantee - provision for two guarantees - express or implied conditions - objective intention - D DECISION : Appeal dismissed with costs

THE SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL CA 40407/98 DC 5780/95

MASON P PRIESTLEY JA BEAZLEY JA Thursday 9 March 2000 OVID PROSILIS v DOUBLE BAY NEWSPAPERS PTY LTD & ORS

The respondents sued upon a written loan agreement ("the Agreement") whereby the appellant personally guaranteed the due payment of any amount owing by the principal debtor (the appellant's company) to the respondents. In a section of the Agreement marked "Application for Credit Account", the personal guarantee of each director was required in the case of a registered company. The appellant and his wife were both directors but only one of the guarantees was completed. The guarantee named the appellant and was executed by him with his signature being witnessed by his wife before they faxed it back to the respondents. The principal debtor went into liquidation.