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
Coast 2 Coast Earthmoving Pty Ltd sues Graham Andersen for monies due and owing pursuant to a guarantee.
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.
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.
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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- Case
- [2011] QDC 166
- Decision Date
CaseChat Overview and Summary
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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