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T W Timber Treatment P/L v Giddings, Aaron Lyall [2022] VSCA 147

GUARANTEE, INSOLVENCY
Victorian Court of Appeal
Judge(s): 
McLeish, T Forrest And Macaulay JJA
Parties: 

T W Timber Treatment P/L v Giddings, Aaron Lyall

Judgment Date: 
29 July 2022
Catchwords: 

GUARANTEE - Enforceability - Director's guarantee - Application for credit trading terms - Where answer 'no' given to question whether director prepared to be personally bound - Intention to be personally bound inferred from whole of the document including the placement of signature beneath express terms - Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165, Clark Equipment Credit of Australia Ltd v Kiyose Holdings Pty Ltd (1989) 21 NSWLR 160, Scottish Amicable Life Assurance Society v Reg Austin Insurances Pty Ltd (1985) 9 ACLR 909 applied - Appeal allowed.

INSOLVENCY - Deed of company arrangement (DOCA) - Interest - Liability for interest on principal debtor's debt pursuant to director's guarantee - Whether ongoing liability for interest under guarantee terminated by operation of DOCA releasing principal debtor's debt - Creditor's rights under director's guarantee including interest not affected by DOCA - Corporations Act 2001 (Cth) s 444H, s 444J - McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 applied - Perrott v Newton King Ltd [1933] NZLR 1131, Jowitt v Callaghan (1938) 38 SR (NSW) 512, Hill v Anderson Meat Industries Ltd [1971] 1 NSWLR 868, Hill v Anderson Meat Industries Ltd [1972] 2 NSWLR 704, Gan v Sanders (1994) 15 ACSR 298, Helou v PDM Mulligan Pty Ltd (2003) 57 NSWLR 74, Hanson Construction Materials Pty Ltd v Davey (2010) 79 ACSR 668 considered.

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