Lavin v Toppi [2014] NSWCA 160

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Lavin v Toppi [2014] NSWCA 160 Hearing dates: 5 May 2014 Decision date: 23 May 2014 Before: Macfarlan JA at [1]; Emmett JA at [2]; Leeming JA at [11] Decision: Appeal dismissed, with costs. Catchwords: EQUITY - contribution between co-sureties - co-surety discharged less of borrower's indebtedness than another and obtained covenant not to sue from Bank - whether liability no longer "co-ordinate" with other co-surety - whether other co-surety's payment conferred benefit on first surety - whether dismissal of Bank's proceedings meant no longer co-ordinate liabilities - whether Carr v Thomas [2009] NSWCA 208 clearly wrong - whether disentitling conduct Legislation Cited: Civil Liability (Contribution) Act 1978 (UK) Civil Liability Act 2002 (NSW), Part 4 Civil Procedure Act 2005 (NSW), ss 90, 91 Judicature Act 1873 (UK), s 25(11) Law Reform (Law and Equity) Act 1972 (NSW), s 5 Law Reform (Miscellaneous Provisions) Act 1946 (NSW), s 5 Uniform Civil Procedure Rules 2005, r 36.11(2) Wrongs Act 1958 (Vic), s 24AA Cases Cited: Albion Insurance Co Ltd v Government Insurance Office of NSW [1969] HCA 55; 121 CLR 342 Armstrong v Commissioner of Stamp Duties (1969) 69 SR (NSW) 38 Bank of Adelaide v Lorden (1970) 127 CLR 185 Baxter v Obacelo Pty Ltd [2001] HCA 66; 205 CLR 635 Bonner v Tottenham and Edmonton Permanent Investment Building Society [1899] 1 QB 161 Brighton v Australia and New Zealand Banking Group Ltd [2011] NSWCA 152 Burke v LFOT Pty Ltd [2002] HCA 17; 209 CLR 282 Carr v Thomas [2009] NSWCA 208 Commercial Bank of Tasmania v Jones [1893] AC 313 Craythorne v Swinburne (1807) 14 Ves 162; 33 ER 482 Deanplan Ltd v Mahmoud [1993] Ch 151 Duck v Mayeu [1892] 2 QB 511 Duncan, Fox & Co v North and South Wales Bank (1880) 6 App Cas 1 Falcke v Scottish Imperial Insurance Company (1886) 34 Ch D 234 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; 239 CLR 89 Friend v Brooker [2009] HCA 21; 239 CLR 129 Gladman Commercial Properties v Fisher Hargreaves Proctor [2013] EWCA Civ 1466 Hancock v Williams (1942) 42 SR (NSW) 252 HIH Claims Support Ltd v Insurance Australia Ltd [2011] HCA 31; 244 CLR 72 Johnson v Davies [1999] Ch 117 McDermott v Black (1940) 63 CLR 161 Murray-Oates v Jjadd Pty Ltd [1999] SASC 537; 76 SASR 38 Pollak v National Australia Bank Ltd [2002] FCA 237 Pritchard v DJZ Constructions Pty Ltd [2012] NSWCA 196 Robinson v Tait [2002] 2 NZLR 30 Stewart v Atco Controls Pty Ltd (in liq) [2014] HCA 15 Thompson v Australian Capital Television Pty Ltd (1996) 186 CLR 574 Tucker v Bennett (1927) 60 OLR 118; [1927] 2 DLR 42 Watts v Aldington [1999] L&TR 578 Texts Cited: Raoul Colinvaux (ed), Carver's Carriage by Sea, (13th ed, 1982) Vol 2 Digest of Justinian, 14.2, 46.1.17, 46.1.39 D Foskett, The Law and Practice of Compromise, (7th ed 2010, Sweet & Maxwell) Institutes of Justinian, 3.20.4 Sir Nathaniel Lindley, The Law of Partnership, (4th ed 1878, Sweet & Maxwell) D Marks and G Moss (eds), Rowlatt on Principal and Surety, (6th ed 2011, Sweet & Maxwell) Glanville Williams, Joint Obligations, (1949, Butterworths) Category: Principal judgment Parties: Dolores Lavin (First Appellant) Dolores Lavin Management Pty Limited (Second Appellant) Paola Toppi (First Respondent) Neil Cunningham (Second Respondent) Basecove Pty Limited (Third Respondent) Representation: Counsel: M Einfeld QC with S Golledge (Appellants) M R Pesman SC (Respondents)