FJ & SM Monaghan Pty Ltd v Slade [2018] NSWCA 79

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: FJ & SM Monaghan Pty Ltd v Slade [2018] NSWCA 79 Hearing dates: 4 April 2018 Decision date: 18 April 2018 Before: McColl JA at [1]; Meagher JA at [1]; Ward JA at [1] Decision: 1. Appeal allowed. 2. Order 2 made by the District Court on 9 June 2017 (being the verdict for the second and third defendants on the plaintiff's claim) be set aside and, in lieu thereof, verdict and judgment for the plaintiff against the second and third defendants in the sum of $750,000, that judgment to take effect on 9 June 2017. 3. Order 2 made by the District Court on 11 July 2017 (being that the plaintiff pay 20% of the second and third defendants' costs on the plaintiff's claim) be set aside and, in lieu thereof, order the second and third defendants pay the plaintiff's costs of its claim in the District Court, including costs on the argument as to costs. 4. Order the respondents pay the appellant's costs of this appeal. Catchwords: GUARANTEE AND INDEMNITY – construction – use of extrinsic evidence to identify subject matter – where guarantee expressed to cover the debt with supplier for fuel supplied to debtor – whether guarantee covered interest on unpaid balance – whether guarantee covered amount outstanding on date of guarantee or thereafter from time to time Legislation Cited: District Court Act 1973 (NSW), ss 4(1), 44(1)(a)(ii), 51 Cases Cited: Airservices Australia v Ferrier (1996) 185 CLR 483 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549 Bacchus Marsh Concentrated Milk Co Ltd v Joseph Nathan & Co Ltd (1919) 26 CLR 410 Cherry v Steele-Park [2017] NSWCA 295 Coghlan v SH Lock (Australia) Ltd (1987) 8 NSWLR 88 County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2008] NSWCA 193 Devaynes v Noble (Clayton's Case) (1816) 1 Mer 572; 35 ER 781 Fahey v MSD Speirs Ltd [1976] 1 NZLR 240 Fenwick v Federal Steam Navigation Co (1943) 44 SR (NSW) 1 Gardiner v Agricultural & Rural Finance Pty Ltd [2007] NSWCA 235 Heffield v Meadows (1869) LR 4 CP 595 Manufacturers' Mutual Insurance Ltd v Withers (1988) 5 ANZ Ins Cas ¶60-853 Mikasa (NSW) Pty Ltd v Festival Stores (1972) 127 CLR 617 New South Wales v The Commonwealth (The Incorporation Case) (1990) 169 CLR 482 North v Marina [2003] NSWSC 64 Rava v Logan Wines [2007] NSWCA 62 Reardon Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 South Sydney Council v Royal Botanic Gardens [1999] NSWCA 478; (1999) 10 BPR 18961 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 Category: Principal judgment Parties: FJ & SM Monaghan Pty Ltd (Appellant) Stephen Garry Slade (First Respondent) Wendy Maree Slade (Second Respondent) Representation: Counsel: T Faulkner SC, A Cornish (Appellant) M Cashion SC, JH Stephenson (Respondents)