Paola Toppi v Dolores Lavin [2013] NSWSC 1361

Supreme Court New South Wales

Medium Neutral Citation: Paola Toppi v Dolores Lavin [2013] NSWSC 1361 Hearing dates: 20, 21, 22 August 2013 Decision date: 12 September 2013 Jurisdiction: Equity Division Before: Rein J Decision: The defendants to pay equitable contribution to the plaintiffs in respect of the monies paid by the plaintiffs to the Bank being half the difference between the amount of $2.9M paid by the plaintiffs and $1.35M paid by the defendants subject to an adjustment to take into account the fact that the defendants paid $1.35M earlier than the plaintiffs. Catchwords: EQUITY- equitable contribution - whether the defendants should pay the plaintiffs contribution on the basis that the plaintiffs and defendants are co-sureties and are equally liable to the bank for the debts of Luxe Studios - whether a covenant not to sue from the bank is effectively a release from liability as a co-surety - whether the plaintiffs have failed to "do equity" and therefore not entitled to equitable contribution - whether there are other co-sureties that are liable Cases Cited: Albion Insurance Co Ltd v Government Insurance Office of New South Wales (1969) 121 CLR 342 Bank of Adelaide v Lorden (1970) 127 CLR 185 Belan & Anor v Casey (2003) 57 NSWLR 670 Brookes v Marshall [1996] NSWCA 67 Buckeridge v Mercantile Credits Ltd (1981) 147 CLR 654 (1981) 147 CLR 654 Burke v LFOT (2002) 209 CLR 282 Carr v Thomas [2009] NSWCA 208 Cockburn v GIO Finance Ltd (No 2) (2001) 51 NSWLR 624 Cornfoot v Holdenson (1931) 37 ALR 376 Coulls v Bagot's Executor & Trustee Co Ltd (1967) 119 CLR 460 Craythorne v Swinburne (1807) 14 Ves 160, (1807) 33 ER 482 Dawson v Bankers and Traders Insurance Co Ltd [1957] VR 491 Deanplan Ltd v Mahmoud & Anor [1993] Ch 151 Dering v Earl of Winchelsea (1787) 1 Cox Eq Cas 318; (1787) 29 ER 1184; [1775-1802] All ER Rep 140 Duncan, Fox & Co v North and South Wales Bank (1880) L.R. 6 App Cas 1 Friend v Booker (2009) 239 CLR 129 Gasbourne Pty Ltd, Re [1984] VR 801 Greenwood v Francis [1899] 1 QB 312 Hampton v Minns [2002] 1 WLR 1 Leigh-Mardon Pty Ltd v Wawn & Ors (1995) 17 ACSR 741 Limit (No 3) Ltd v Ace Insurance Ltd [2009] NSWSC 514 Mahoney v McManus (1981) 180 CLR 370 Morgan Equipment Company v Rogers (No 2) (1993) 32 NSWLR 467 McLean v Discount & Finance (1939) 64 CLR 312 Murray-Oates v Jjadd Pty Ltd [1999] SASC 537, (1999) 76 SASR 38 Official Trustee in Bankruptcy v Citibank Savings Ltd (1995) 38 NSWLR 116 Parker v Alessi & Ors [2011] NSWSC 947 Resource Equities Ltd v Carr [2008] NSWSC 977 Robinson v Campbell (No 2) (1992) 30 NSWLR 503 Scholefield Goodman & Sons Ltd v Zyngier [1986] AC 562; [1986] VR 311 Trotter v Franklin [1991] 2 NZLR 92 Texts Cited: McGuinness KP, The Law of Guarantee: A Treatise on Guarantee, Indemnity, and the Standby Letter of Credit, 2nd ed, (1996) Carswell Meagher, Gummow and Lehane, Equity: Doctrine and Remedies, 4th ed (2002) Butterworths LexisNexis O'Donovan and Phillips, Modern Contract of Guarantee (Thomson Lawbook Co., Loose Leaf Service) Category: Principal judgment Parties: Paola Toppi (first plaintiff) Neil Cunningham (second plaintiff) Basecove Pty Ltd as Trustee of the Cunningham Trust (third plaintiff) Dolores Lavin (first defendant) Dolores Lavin Management Pty Ltd (second defendant) Luxe Studios & Productions Pty Ltd (third defendant) Representation: Counsel: Mr M. Pesman (plaintiffs) Mr M. Einfeld QC and Mr J. Duncan (defendants) Solicitors: Beazley Singleton Lawyers (plaintiffs) Websters Solicitors (defendants) File Number(s): 2012/119962