Axess Debt Management Pty Ltd v Nottas

Axess Debt Management Pty Ltd (the applicant) sought to enforce a deed of settlement against Mr Nottas (the respondent). The dispute concerned whether Mr Nottas was bound by the deed, which had been entered into by his company, Axess Debt Management Pty Ltd, and himself as a personal guarantor. The matter came before Judge Simpson in the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the deed of settlement, which contained a personal guarantee from Mr Nottas, was valid and enforceable against him personally. Specifically, the Court had to determine if Mr Nottas had executed the deed in his capacity as a guarantor, thereby assuming personal liability for the debts of the company.

Judge Simpson found that Mr Nottas had signed the deed in his personal capacity as a guarantor, notwithstanding that the company was also a party to the deed. The Court applied the principle that where a party signs a document in a representative capacity and also in a personal capacity, the signature in the personal capacity creates personal liability. The wording of the deed, which clearly distinguished between the company and Mr Nottas in his personal capacity, supported this interpretation. The Court also considered the surrounding circumstances and the intention of the parties at the time the deed was executed.

The Court ordered that the deed of settlement was valid and enforceable against Mr Nottas personally, and he was therefore liable to pay the amounts stipulated in the deed.