Barecall Pty Limited v Hoban [2009] NSWSC 1104

New South Wales Supreme Court

CITATION : Barecall Pty Limited v Hoban [2009] NSWSC 1104

HEARING DATE(S) : 18, 19 and 20 February; 25 and 26 August 2009

JUDGMENT DATE : 16 October 2009

JURISDICTION : Equity Division

JUDGMENT OF : Ward J

DECISION : Plaintiff's claim dismissed.

CATCHWORDS : GUARANTEE AND INDEMNITY - the contract of guarantee - original lease, sub lease and variation of lease contained guarantee covenants - whether defendants guaranteed performance of lessee's obligations under lease, as varied, and sub-lease - whether failure to register leases fatal to lessor's claim - whether failure of some defendants to sign documents would discharge other defendants from liability - held that defendants not liable as guarantors - lease, as varied, did not provide for guarantee by five defendants - applying Chan v Cresdon, guarantee obligation only extended to registered lease - failure of intended co-guarantors to sign documents would be effective to discharge other defendants from liability - ESTOPPEL - general principles - whether certain defendants estopped from denying obligation to guarantee performance of lessee's obligations - whether representation made and relied upon giving rise to equitable estoppel - whether common assumption between lessor and defendants, giving rise to estoppel by convention - held that defendants not estopped from denying guarantee obligation - representation not made by relevant defendants - no sufficiently clear, unequivocal and unambiguous common assumption to give rise to estoppel by convention

Corporations Act 2001 LEGISLATION CITED : Family Provision Act 1982 Real Property Act 1900

CATEGORY : Principal judgment

Amalgamated Investment & Property Co v Texas Commerce International Bank [1982] 1 QB 84 Andrews v Racken Pty Limited [2007] NSWSC 1010 Ankar v Westminster Finance (Australia) Limited (1987) 162 CLR 549 Bell Group Limited (in liq) v Westpac Banking Corporation [2008] WASC 239 Bosaid v Andry [1963] VR 465 Chan v Cresdon Pty Limited (1989) 168 CLR 242 Clark Equipment Credit Australia Limited v Kiyose Holdings Pty Limited (1989) 21 NSWLR 160 Coghlan v Lock (1987) 8 NSWLR 881 Corumo Holdings Pty Limited v C Itoh Limited (1991) 5 ACSR 720 Discount & Finance Limited v Gehrig's NSW Wines Limited (1940) 40 SR (NSW) 588 Evans v Bremridge (1856) 8 DeG M & G 100; 44 ER 327 Expectation Pty Limited v PRD Realty Pty Limited (2004) 140 FCR 17 Farrow Mortgage Services Pty Limited (In liq) v Slade and Nelson (1996) 38 NSWLR 636 FCA Finance Pty Limited v Cummings (unreported, QSC, 8 February 1988) Follacchio v Harvard Securities (Aust) Pty Ltd [2002] FCA 1067 GEC Marconi Systems Pty Limited (2003) 128 FCR 1 Hadid v Redpath (2001) 35 MVR 152 Holme v Brunskill (1877) 3 QBD 495 James Graham Limited v Southgate-Sands [1986] 1 QB 80 James Thane Pty Limited v Conrad International Hotels Corp [1999] QCA 516 Jones v Dunkel (1959) 101 CLR 298 CASES CITED : Laurinda Pty Limited v Capalaba Park Shopping Centre Pty Limited (1989) 166 CLR 62 Macrory v Scott (1850) 5 Exch 906; 155 ER 396 Marston v Charles H Griffith & Co Pty Limited (1985) 3 NSWLR 294 Masters v Cameron (1954) 91 CLR 353 Monie v Commonwealth of Australia (2005) 63 NSWLR 729 NAIS v Minister for Immigration and Multicultural and Indigenous Affairs (2005) 228 CLR 470 National Commercial Banking Corporation of Australia Limited v Cheung (1983) 1 ACLC 1326 National Westminster Finance NZ Limited v National Bank of New Zealand Limited [1996] 1 NZLR 548 NEC Information Systems Australia Pty Limited v Linton (Wood J, 17 April 1985, unreported) Scottish Amicable Life Assurance Society v Reg Austin Insurance Pty Limited (1995) 9 ACLR 909 Print National Pty Limited v Helps [2007] NSWSC 1050 R v Burdett (1820) 4 B & Ald 95 Rhoden v Wingate [2002] NSWCA 165; (2002) 36 MVR 499 RT & YE Falls Investments Pty Ltd v State of NSW [2001] NSWSC 1027 Schellenberg v Tunnel Holdings Pty Limited (2000) 200 CLR 121 Telado Pty Limited v Vincent (1996) 7 BPR 14,844; (1996) NSW Conv R 55-786 Toll (FGCT) Pty Ltd v Alphapharm Pty Limited (2004) 219 CLR 165 Tozer Kemsley & Millbourn (A'Asia) Pty Limited v Collier's Interstate Transport Service Limited (1955) 94 CLR 384 Trade Credits Limited v Burnes [1979] 1 NSWLR 630 Trade Indemnity Co v Workington Harbour and Dock Board [1937] AC 1 Waterman v Gerling Australia Assurance Co Pty Limited (2005) 65 NSWLR 300 Wilton v Farnworth (1948) 76 CLR 646