John Anthony Jeans v John Richard Bruce & Ors [2004] NSWSC 539

New South Wales Supreme Court

CITATION : John Anthony Jeans v John Richard Bruce & Ors [2004] NSWSC 539 HEARING DATE(S) : 15/06/04, 16/06/04, 17/06/04, 21/06/04, 22/06/04, 23/06/04, 24/06/04, 25/06/04 JUDGMENT DATE : 19 July 2004

JURISDICTION: Equity Division Commercial List JUDGMENT OF : Einstein J DECISION : Parties to bring in short minutes of order

CATCHWORDS : Contract - Guarantees - Co-guarantors - Contribution in equity as between contributing co-sureties - Release of one co-surety discharges other sureties as if creditor had released them from their obligations - Whether the availability of equitable contribution depends upon person claiming it having actually paid or being about to be required to pay an obligation from his own money - Whether surety, against whom creditor has obtained judgment on guaranteed debt is entitled to contribution from co-surety before surety has paid that debt-Failure of surety to demonstrate ability and willingness to pay his just proportion of guaranteed debt is factor to be taken into account in determining what, if any, relief is available to the surety in a contribution action - Futility of granting declaratory relief - Covenant not to sue - Whereas release of one of a number of joint, or joint and several, debtors releases all of them from the joint debt, a covenant not to sue does not-Distinctions between release and covenant not to sue - Jurisprudential provenance of rule that an indemnifier is estopped from averring contrary to a judgment handed down in previous relevant proceedings to which his/her indemnified was a party - Whether such an estoppel can arise in respect of a non-party co-guarantor - Principles - Res judicata - Cause of action estoppel - Issue estoppel - Anshun estoppel - General rule that only parties to the proceedings and their privies are bound by a res judicata, subject to a limited exception in respect of a non-party bound by contract to indemnify a party for a liability the subject of the first proceedings - Examination of indemnifier's exception to general rule that only parties and their privies are bound by a res judicata - Evidence - Admissibility by estoppel route Evidence Act 1995 LEGISLATION CITED : Law Reform (Miscellaneous Provisions) Act 1946 Law Society Rules (NSW) Albion Insurance Co Ltd v Government Insurance Office of New South Wales (1969) 121 CLR 342 Amalgamated Investment and Property Co Ltd v Texas Commerce International Bank Ltd [1982] QB 84 Anderson-Berry, Re; Harris v Griffith [1928] Ch 290 Armstrong v Commissioner of Stamp Duties (1967) 69 SR (NSW) 38 Barry v Moroney (1873) 8IrRepCL 554 Belan v Casey (2003) 57 NSWLR 670 Ben Shipping Co (Pte) Ltd v An Bord Bainne (The C Joyce) [1986] 2 All ER 177 Blair & Perpetual Trustee Co Ltd v Curran (Adams' Will) (1939) 62 CLR 464 Bond v Larobi Pty Ltd (1992) 6 WAR 489 Bonner v Tottenham & Edmonton Permanent Investment Building Society [1899] 1 QB 161 Bonser v Cox (1841) 4 Beav 379 Brice & Ors v J H Wackerbarth (Australasia) Pty Ltd [1974] 2 Lloyd's Rep 274 Burke v LFOT Pty Ltd [2002] HCA 17; (2002) 76 ALJR 749 Cacciola & Ors v Fire & All Risks Insurance Co Ltd [1971] 1 NSWLR 691 Carl Zeiss Stiftung v Rayner & Keeler Ltd (No 2) [1967] AC 853 Carl Zeiss Stiftung v Rayner & Keeler Ltd. (No 3) [1970] Ch. 506 Cave v Mills (1862) 7 H&N 913; 158 ER 740 C E Health Casualty & General Insurance Ltd & AMP General Insurance Ltd v Pyramid Building Society (in liq) [1997] 2 VR 256 Central London Property Trust Limited v High Trees House Limited [1947] KB 130 Cheetham v Ward (1797) 1 Bos & P. 630 Cockburn v GIO Finance Ltd (No.2) (2001) 51 NSWLR 624 Codelfa Construction Pty Limited v State Rail Authority (NSW) (1982) 149 CLR 337 Commonwealth v Verwayen (1990) 170 CLR 394 Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Ltd (1986) 160 CLR 226 CSR Limited v Cigna Insurance Australia Limited & Ors (1997) 189 CLR 345 Dering v Earl of Winchelsea (1787) 1 Cox Eq Cas 318 Director of Public Prosecutions v Humphrys [1977] AC 1 Dorgal Holdings Pty Ltd v Buckley (1996) 22 ACSR 164 Duffield v Scott (1789) 100 ER 628 Edwards v Culcairn Shire Council (1963) 64 SR (NSW) 62 Edwards v Insurance Office of Australia Ltd (1933) 34 SR (NSW) 88 Effem Foods Pty Ltd v Trawl Industries of Australia Pty Ltd (Receivers and Managers appointed( (in liq) & Ors (1993) 43 FCR 510 Ellesmere Brewery Company v Cooper [1896] 1 QB 75 EWA (a debtor) Re [1901] 2 KB 642 FAI General Insurance Company Ltd v Interchase Corporation Ltd (in liq) (1998) 10 ANZ Ins Cas 61-428 Fireproof Doors Limited, In re v The Company [1916] 2 Ch 142 Foss v Harbottle (1843) 2 Hare 461 Gracechurch Holdings Pty Ltd v Breeze & Anor (1992) 7 WAR 518 Grundt v Great Boulder Pty Gold Mines Ltd (1937) 59 CLR 641 Heimann v Commonwealth of Australia (1938) 38 SR (NSW) 691 Henderson v Henderson (1843) 3 Hare 100 Hoysted v Federal Commissioner of Taxation (1921) 29 CLR 537 Hunter v Chief Constable of the West Midlands Police [1982] AC 529 CASES CITED : Insurance Exchange of Australia v Dooley & Anor (2000) 50 NSWLR 222 Jackson v Goldsmith (1950) 81 CLR 446 JN Taylor Holdings Limited (in liq) and JN Taylor Finance Pty Ltd (in liq) v Bond & Ors (1993) 59 SASR 432 Johnson v Gore Wood & Co (a firm) [2002] 2 AC 1 Jones v Williams (1841) 8 M & W 349 Jorden v Money [1843-60] All ER Rep 350 Kendall v Hamilton (1879) 4 App Cas 504 King v Hoare (1844) 13 M & W 494 King v Norman (1847) 4 CB 884 Legione v Hateley (1983) 152 CLR 406 Lockyer v Ferryman (1877) 2 App Cas 519 McLean v Discount & Finance Ltd (1939) 64 CLR 312 Mahoney v McManus (1981) 180 CLR 370 Mercantile Bank of Sydney v Taylor (1891) 12 LR (NSW) L 252 Mercantile Investment & General Trust Company v River Plate Trust, Loan & Agency Company [1894] 1 Ch 578 Mills v Cooper [1967] 2 QB 459 Morrison Rose & Partners v Hillman [1961] 2 QB 266 Murphy & Ors v Abi-Saab & Ors (1995) 37 NSWLR 280 Nicholson v Revill (1836) 4 Ad & El 675 Parker v Lewis (1873) LR8ChApp 1056 Pollak v National Australia Bank Ltd [2002] FCA 237 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589 Post Office v Norwich Union Fire Insurance Society Ltd [1967] 2 QB 363 Ramsay v Pigram (1968) 118 CLR 271 R v Inhabitants of the Township of Hartington Middle Quarter (1855) 4 El &Bl 780 Reichel v Magrath (1889) 14 App Cas 665 Roberts v Karr (1809) 1 Taunt 495 Rogers v R (1994) 181 CLR 251 Smith v Crompton (1832) 3 B & Ad 407 South Australian Housing Trust v State Government Insurance Commission (1989) 51 SASR 1 State Bank of New South Wales Ltd v Alexander Stenhouse Ltd & Ors (1997) Aust Torts Reports 81-423 (NSWSC) State of New South Wales v AXA Insurance Australia Ltd (formerly known as Union Des Assurances De Paris IARD) (2002) 54 NSWLR 409 Sterling Engineering Co Ltd v Patchett [1955] AC 534 Street & Halls v Retravision (NSW) Pty Ltd (1995) 56 FCR 588 Taylors Fashions Ltd v Liverpool Victoria Trustees Co Ltd [1982] QB 133 Duchess of Kingston's Case (1776) 20 State Tr 355 Thompson v Palmer (1933) 49 CLR 507 Trawl Industries of Australia Pty Ltd (in liq) & Ors v Effem Foods Pty Ltd (1992) 36 FCR 406 VACC Insurance Co Ltd v BP Australia Ltd (1999) 47 NSWLR 716 Walker v Bowry (1924) 35 CLR 48 Waltons Stores (Interstate) Limited v Maher (1988) 164 CLR 387 Ward v National Bank of New Zealand Limited (1883) 8 App. Cas 755 Wolmershausen v Gullick [1893] 2 Ch 514 Woolmington v Bronze Lamp Restaurant Pty Ltd [1984] 2 NSWLR 242 Yat Tung Investment Co Ltd v Dao Heng Bank Ltd [1975] AC 581 John Anthony Jeans (Plaintiff) PARTIES : John Richard Bruce (First Defendant) Harpley Nominees Pty Limited (Second Defendant) Advance Publicity Pty Limited (Third Defendant) FILE NUMBER(S) : SC 50104/03 Mr J Ireland QC (Plaintiff) COUNSEL : Mr W Hodgekiss (First Defendant) Mr B Rayment QC, Mr D Kell (Second and Third Defendant) Moloney Lawyers (Plaintiff) SOLICITORS : Gary Cassim & Associates (First Defendant) Efron & Associates (Second and Third Defendant)