Amalagamated Television Services Pty Ltd v Linda Cameron Pickard, Alexandra Cameron Pickard and Linda Louise Pickard

Amalgamated Television Services Pty Ltd (ATV) sought to recover from Linda Cameron Pickard, Alexandra Cameron Pickard and Linda Louise Pickard (the defendants) the sum of $10,000, which ATV alleged was due and owing to it by the defendants under a guarantee. The dispute arose from a loan agreement between ATV and a company, Pickard Holdings Pty Ltd, which had subsequently been placed into liquidation. The defendants were directors of Pickard Holdings and had provided personal guarantees for the company's debt to ATV. The matter was heard in the Supreme Court of New South Wales.

The central legal issue before the Court was whether the defendants were liable under the guarantees for the outstanding debt owed by Pickard Holdings to ATV. Specifically, the Court had to determine if the guarantees were valid and enforceable, notwithstanding the liquidation of the principal debtor, and whether ATV had taken all necessary steps to preserve its rights against the guarantors. The defendants contended that the liquidation of Pickard Holdings discharged their obligations under the guarantees.

The Court found that the guarantees were independent obligations of the defendants and were not discharged by the liquidation of Pickard Holdings. Applying the principles of contract law, the Court held that the terms of the guarantee agreements clearly stipulated that the liability of the guarantors would remain notwithstanding any change in the principal debtor's circumstances, including insolvency or liquidation. The Court reasoned that the guarantees were intended to provide ATV with a direct recourse against the defendants, separate from the company's obligations.

The Court ordered that the defendants were jointly and severally liable to pay ATV the sum of $10,000, together with interest and costs.