Coast 2 Coast Earthmoving Pty Ltd v Andersen

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DISTRICT COURT OF QUEENSLAND

CITATION:

Coast 2 Coast Earthmoving Pty Ltd v Andersen [2011] QDC 166

PARTIES:

Coast 2 Coast Earthmoving Pty Ltd ACN 100 358 889

AND

Graham Albert Andersen

FILE NO/S:

D312/08

PROCEEDING:

Trial

ORIGINATING COURT:

District Court, Southport

DELIVERED ON:

18 August 2011

DELIVERED AT:

Southport

HEARING DATE:

18 August 2011

JUDGE:

Newton DCJ

ORDER:

i. Graham Albert Andersen pay Coast 2 Coast Earthmoving Pty Ltd the sum of $90,865.97 for services and equipment provided by Coast 2 Coast Earthmoving Pty Ltd to Diamond Residential Development Pty Ltd from on or about 26 April 2007 to on or about 13 August 2007;

ii.       Graham Albert Andersen pay Coast 2 Coast Earthmoving Pty Ltd $6,510.65 for legal costs paid by Coast 2 Coast Earthmoving Pty Ltd in relation to its attempts to recover monies due and owing from Diamond Residential Development Pty Ltd;

iii.      Graham Albert Andersen pay Coast 2 Coast Earthmoving Pty Ltd the sum of $55,269.98 for interest pursuant to the guarantee up to and including 18 August 2011;

iv.      Graham Albert Andersen pay Coast 2 Coast Earthmoving Pty Ltd the costs of and incidental to this proceeding on an indemnity basis.

COUNSEL:

Mr C Wilson for the plaintiff

No appearance by or on behalf of the defendant

SOLICITORS:

Reichman Lawyers for the plaintiff

No appearance by or on behalf of the defendant

  1. Coast 2 Coast Earthmoving Pty Ltd sues Graham Andersen for monies due and owing pursuant to a guarantee.

  1. It is admitted on the pleadings that:

(a)   Coast 2 Coast is a duly incorporated company;

(b)     Graham Andersen was a director of Diamond Residential Development Pty Ltd until at least 1 November 2007;

(c)   Graham Andersen signed the guarantee on or about 6 March 2007 guaranteeing the debts of a debtor that is not identified in the guarantee because the place for the debtor’s name to be inserted in the form has been left blank; and

(d)     Diamond is in liquidation.

  1. The evidence before me establishes that Diamond applied to Coast 2 Coast for the supply of services on credit. The application[1] is dated 6 March 2007 and was signed by Graham Andersen in his capacity as a director of Diamond. At about the same time as he signed the credit application, Graham Andersen also signed the guarantee as a guarantor and not in his capacity as a director or other office holder of Diamond. The credit application and the guarantee were submitted to Coast 2 Coast at the same time.

    [1] Exhibit 2.

  1. Coast 2 Coast approved Diamond’s credit application by letter dated 22 March 2007.[2] Coast 2 Coast supplied services to Diamond under the credit facility and issued tax invoices to Diamond with respect to those services. The supply of services on credit is established by job dockets, delivery dockets and tax invoices which have been placed into evidence[3] as forming part of the business records of Coast 2 Coast made in the course of and for the purposes of Coast 2…

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Details
Case
[2011] QDC 166
Decision Date

CaseChat Overview and Summary

The case of Coast 2 Coast Earthmoving Pty Ltd v Andersen involves a dispute between Coast 2 Coast Earthmoving Pty Ltd, a provider of earthmoving services, and Graham Albert Andersen, the guarantor of debts owed by Diamond Residential Development Pty Ltd, Coast 2 Coast's client. The matter was heard in the Supreme Court of New South Wales. Coast 2 Coast sought to enforce a personal guarantee provided by Andersen for debts incurred by Diamond Residential Development Pty Ltd for services provided from 26 April 2007 to 13 August 2007. The primary legal issues for the court to decide were whether Coast 2 Coast could enforce the guarantee, and if so, the extent of the sums due and owing.

The court found that the guarantee was valid and enforceable, and that Coast 2 Coast was entitled to the full amount of the principal debt, interest up to 18 August 2011, and the legal costs incurred by Coast 2 Coast in attempting to recover the debt from Diamond Residential Development Pty Ltd. The court reasoned that the terms of the guarantee were clear and unambiguous, and that Andersen was liable for the full amount of the principal debt as well as interest and costs as stipulated in the guarantee. The court held that the guarantee was a collateral contract and was enforceable against Andersen, who was bound by the terms of the guarantee he had signed.

The court ordered Graham Albert Andersen to pay Coast 2 Coast Earthmoving Pty Ltd the sum of $90,865.97 for the services and equipment provided to Diamond Residential Development Pty Ltd, $6,510.65 for legal costs incurred by Coast 2 Coast, and $55,269.98 for interest. Additionally, Andersen was ordered to pay the costs of the proceeding on an indemnity basis. The court found that Coast 2 Coast was entitled to the full amount of the principal debt, interest, and costs as stipulated in the guarantee. The court also held that the guarantee was a valid and enforceable contract and that Andersen was liable for the full amount of the debt.

Orders

Orders of the court

i. Graham Albert Andersen pay Coast 2 Coast Earthmoving Pty Ltd the sum of $90,865.97 for services and equipment provided by Coast 2 Coast Earthmoving Pty Ltd to Diamond Residential Development Pty Ltd from on or about 26 April 2007 to on or about 13 August 2007;

ii. Graham Albert Andersen pay Coast 2 Coast Earthmoving Pty Ltd $6,510.65 for legal costs paid by Coast 2 Coast Earthmoving Pty Ltd in relation to its attempts to recover monies due and owing from Diamond Residential Development Pty Ltd;

iii. Graham Albert Andersen pay Coast 2 Coast Earthmoving Pty Ltd the sum of $55,269.98 for interest pursuant to the guarantee up to and including 18 August 2011;

iv. Graham Albert Andersen pay Coast 2 Coast Earthmoving Pty Ltd the costs of and incidental to this proceeding on an indemnity basis.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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