Westlawn Finance Limited v Tagg [2018] NSWSC 1491

Supreme Court New South Wales

Medium Neutral Citation: Westlawn Finance Limited v Tagg [2018] NSWSC 1491 Hearing dates: 3 to 7 September 2018 Decision date: 08 October 2018 Jurisdiction: Equity - Commercial List Before: Ball J Decision: See paragraphs [133] to [136] of this judgment. Catchwords: GUARANTEE AND INDEMNITY – Discharge of guarantor – Creditor releases co-guarantor – Effect of one co-guarantor's consent to release of another co-guarantor CONTRACTS – Unjust contracts – Contracts Review Act 1980 (NSW) – Whether contracts for a guarantee and mortgage on ordinary commercial terms were unjust – Relevance of independent legal advice – Whether the contracts conferred a benefit CONTRACTS – Misleading conduct under statute – Misleading or deceptive conduct – s 18 of the Australian Consumer Law – Whether conduct was in trade and commerce – Whether any loss or damage was suffered CONTRACTS – Misleading conduct under statute – Misleading or deceptive conduct – s 18 of the Australian Consumer Law – Circumstances in which silence may be misleading or deceptive – Whether impugned conduct caused loss or damage TORTS – Miscellaneous torts – Interference with contractual and other relations – Inducement of breach of contract – Knowledge that conduct would constitute a breach of contract – Intention to persuade or induce breach of contract TORTS – Miscellaneous torts – Conspiring to injure – Conspiring to injure by unlawful means – Intention to injure – Whether unlawful means include torts and breaches of contract CONTRACTS – Misleading conduct under statute – Misleading or deceptive conduct – s 18 of the Australian Consumer Law ­­­– Involvement in a contravention under s 236 of the Australian Consumer Law – Need for causative conduct and actual knowledge – Whether any loss or damage suffered – Contributory negligence – Limitation of liability under s 87CD of the Competition and Consumer Act 2010 (Cth) CONTRACTS – Unconscionable conduct – s 21 of the Australian Consumer Law – s 12CB of the Australian Securities and Investments Commission Act 2001 (Cth) Legislation Cited: Australian Consumer Law Australian Securities and Investments Commission Act 2001 (Cth) Competition and Consumer Act 2010 (Cth) Contracts Review Act 1980 (NSW) Cases Cited: Australian Development Corp Pty Ltd v White [2001] NSWCA 9 Allstate Life Insurance Co v Australia & New Zealand Banking Group Ltd (1995) 58 FCR 26 Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199; (2001) 185 ALR 1 Cole v Lynn [1942] 1 KB 142 Canty v PaperlinX Australia Pty Ltd [2014] NSWCA 309 Daebo Shipping Co Ltd v Ship Go Star (2012) 207 FCR 220; (2012) 294 ALR 635 Fatimi Pty Ltd v Bryant [2002] NSWSC 750 Fatimi Pty Ltd v Bryant (2004) 59 NSWLR 678 Horsburgh v Emerald Rock Pty Ltd [2016] QCA 47 IW v The City of Perth (1997) 191 CLR 1; [1997] HCA 30 Kearsley v Cole (1846) 16 M & W 128 McKernan v Fraser (1931) 46 CLR 343 McWilliam v Penthouse Publications Ltd [2001] NSWCA 237 Mahoney v McManus (1981) 180 CLR 370; [1981] HCA 54 Maritime Union of Australia v Geraldton Port Authority (1999) 93 FCR 34 Marrinan v Vibart [1963] 1 QB 234 Provident Capital Ltd v Naumovski [2013] NSWSC 40 Provident Capital Ltd v Papa (No 1) [2011] NSWSC 460 Provident Capital Ltd v Papa (2013) 84 NSWLR 231; [2013] NSWCA 36 Quinlivan v Australian Competition and Consumer Commission (2004) 160 FCR 1 Walker v Bowry (1924) 35 CLR 48; [1924] HCA 28 West v AGC (Advances) Ltd (1986) 5 NSWLR 610 Winterton Constructions Pty Ltd v Hambros Australia Ltd (1992) 39 FCR 97 Category: Principal judgment Parties: Westlawn Finance Limited (Plaintiff | Cross-Defendant) Sally-Anne Mary Tagg (First Defendant | Cross-Claimant) Frank Bernard Tagg (Second Defendant) Circles of Gold Pty Ltd ACN 088 460 146 (Third Defendant) Representation: Counsel: JR Clarke SC with AMB Cornish (Plaintiff | Cross-Defendant) A Rogers (First Defendant | Cross-Claimant) S Docker (Second and Third Defendants)