GABLEPATH PTY LTD v. MURDOCH [2001] NSWSC 871

New South Wales Supreme Court

CITATION : GABLEPATH PTY LTD v. MURDOCH [2001] NSWSC 871 CURRENT JURISDICTION: EQUITY FILE NUMBER(S) : SC 3379/1997 HEARING DATE(S) : 10, 11 & 14 May 2001 JUDGMENT DATE : 8 October 2001

Gablepath Pty Limited - Plaintiff PARTIES : Paul Murdoch - Defendant Michael Hill, Brian Doyle, John Teague and David Fox t/as Turnbull Hill Solicitors - Cross Defendants to Second Cross-claim JUDGMENT OF : Bryson J at 1

Ms S. Higgins for Plaintiff COUNSEL : T. Howard for Defendant and Cross-claimant C. Birch SC for Cross-defendants to Second Cross-claim Harris Wheeler Lawyers - Plaintiff SOLICITORS : Cantle Carmichael Lawyers - Defendants Phillips Fox Lawyers - Cross-defendants to Second Cross-claim CATCHWORDS : EQUITY - unconscionable dealing - special disadvantage - CONTRACTS - unjust contracts - Contracts Reveiw Act 1980 - Gablepath sued Murdoch on guarantee given by 3 Directors of Auto One Repairs for balance of purchase price of business secured by Bill of Sale over plant - Murdoch cross-claimed (1) against Gablepath for equitable relief and Contracts Review Act relief claiming he did not understand concept of guarantee (2) against Turbull Hill Solicitors who acted for him claiming guarantee was not adequately explained and he was not properly advised whether to enter into transaction. On the facts, Murdoch's claim not to have understood the transaction was rejected and numerous circumstances relied on as unfair to him were held not to be unfair - it was found that the Guarantee was adequately explained by solicitor - judgment for plaintiff, cross-claims dismissed. LEGISLATION CITED : Contracts Review Act 1980 Corporations Law DECISION : Plaintiff recovers on guarantee, cross-claims dismissed. See [49]