Peter Vitek & Anor v Estate Homes Pty Ltd & Ors [2013] NSWSC 1764

Supreme Court New South Wales

Medium Neutral Citation: Peter Vitek & Anor v Estate Homes Pty Ltd & Ors [2013] NSWSC 1764 Hearing dates: 29 and 30 October 2013 Decision date: 22 November 2013 Jurisdiction: Equity Division Before: Rein J Decision: The third defendant is liable on the guarantee claim for $881K plus interest to date at the Court rate set out in the Uniform Civil Procedure Rules 2005 (NSW) and the costs of the proceedings brought against Estate Homes but is not liable on a contractual basis for the plaintiffs' costs of pursuing the second defendant nor is the third defendant liable for the costs incurred in the proceedings before Bergin CJ in Eq or in these proceedings. Catchwords: EVIDENCE - whether the third defendant signed the guarantee EQUITY - whether the third defendant authorised her husband, the second defendant, to sign the guarantee in the third defendant's name under a general power of attorney - whether the power of attorney enabled the second defendant to execute documents on behalf of the third defendant where those documents confer a benefit on the second defendant and no benefit on the third defendant - whether the guarantee did confer a benefit on the third defendant EQUITY - whether the third defendant ratified the guarantee by taking no action after learning about its execution in her name and by her claims in a defence and cross claim EQUITY - whether the third defendant's actions after learning about the guarantee being signed in her name gives rise to estoppel Legislation Cited: Contracts Review Act 1980 (NSW) Conveyancing Act 1919 (NSW) Fair Trading Act 1987 (NSW) Powers of Attorney Act 2003 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Adler v ASIC [2003] NSWCA 131 Amaya v Everest Property Holdings Pty Ltd [2010] NSWCA 315 Andar Transport Pty Ltd v Brambles Ltd (2004) 217 CLR 424 Ankar Pty Ltd v National Westminster Finance (Aust) Ltd (1987) 162 CLR 549 Associated Midland Corporation v Sanderson Motors Pty Ltd [1983] 3 NSWLR 395 Chan v Cresdon Pty Ltd (1989) 168 CLR 242 City Bank of Sydney v McLaughlin (1909) 9 CLR 615 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500 David Securities v Commonwealth Bank of Australia (1992) 175 CLR 353 Dickinson v The Motor Vehicle Insurance Trust (1987) 163 CLR 500 Ffrench v Sestili; Sestili v Triton Underwriting Insurance Agency Pty Ltd (2007) 98 SASR 28 Global Alliance Network Pty Ltd v Sensis Pty Ltd [2007] NSWCA 163 Guardian v Hughes [2011] NSWSC 729 Harrisons & Crossfield Ltd v L&NW Ry Co Ltd [1917] 2 KB 755 Howell v Macquarie University [2008] NSWCA 26 Hughes bht New South Wales Trustee and Greenwood v Martins Bank Ltd [1933] AC 51 Jones v Dunkel (1959) 101 CLR 298 Klement v Pencoal Ltd [2000] QCA 152 Learn & Play (Rhodes No1) Pty Ltd as Trustee for Rhodes 1 Childcare Centre Unit Trust v Lombe [2011] NSWSC 1506 Ledir Enterprises Pty Ltd [2013] NSWSC 1332 Leybourne v Permanent Custodians Ltd [2010] NSWCA 78 Life Savers (Aust) Ltd v Frigmobile Pty Ltd [1983] 1 NSWLR 431 Macmillan Inc v Bishopsgate Investment Trust Plc (No 3) [1995] 1 WLR 978 Manly City Council v Byrne [2004] NSWCA 123 New South Wales v Tempo Services Ltd [2004] NSWCA 4 Nicholson v Morningstar (St Lukes Garden Apartments) Ltd [2008] NZH 599 Permanent Trustee Co Ltd v Bernera Holdings Pty Ltd [2004] NSWSC 56 Perochinsky v Kirschner [2013] NSWSC 400 Perpetual Trustee Co Ltd v Gibson [2013] NSWSC 276 Re R [2000] NSWSC 886 Reckitt v Barnett, Pembroke & Slater Ltd [1928] 2 KB 244,268 Siahos v J. P. Morgan Trust Australia Limited [2009] NSWCA 20 Spina v Conran Associates Pty Ltd; Spina v M & V Endurance Pty Ltd [2008] NSWSC 326 Spina v Permanent [2009] NSWCA 206 Spina v Permanent Custodians Ltd [2008] NSWSC 561 State Government Insurance Office v Crittenden (1966) 117 CLR 412 Suncorp Insurance & Finance v Milano Assicurazioni SpA [1993] 2 Lloyd's Rep 225 Sweeney v Howard [2007] NSWSC 852 Technical Products Pty Ltd v State Government Insurance Office (1989) 167 CLR 45 Tobin v Broadbent (1947) 75 CLR 378 Yerkey v Jones (1939) 63 CLR 649 Texts Cited: Dal Pont Law of Agency, 2nd ed, (2008) LexisNexis Butterworths Dal Pont, Powers of Attorney (2011) LexisNexis Butterworths Bowstead & Reynolds or Agency, 19th ed, (2010), Sweet & Maxwell Bowstead & Reynolds on Agency, 18th ed, (2006) Sweet and Maxell Category: Principal judgment Parties: Peter Vitek (first plaintiff) Shoshanna Vitek (second plaintiff) Veeda Taheri (third defendant) Representation: Counsel: Mr Pritchard SC and Mr B. Zipser (first and second plaintiff) Mr Coles and Mr Sneddon (third defendant) Solicitors: Farrar Lawyers (first and second plaintiff) McLaughlin & Riordan (third defendant) File Number(s): 2005/258339