Supreme Court
New South Wales
- Amendment notes
Medium Neutral Citation: Crawford v Demertjis & Ruhs Pty Ltd [2024] NSWSC 48 Hearing dates: 31 January 2024 Decision date: 06 February 2024 Jurisdiction: Common Law Before: Adamson JA Decision: (1) Grant leave to appeal.
(2) Dismiss the amended summons and the appeal.
(3) Order the plaintiff to pay the defendant’s costs.
Catchwords: APPEALS — leave to appeal — whether leave required — whether grounds of appeal contain question of mixed fact and law — principles governing grants of leave to appeal — leave to appeal granted
CORPORATIONS — effect of deregistration of lessee on obligations of indemnifier under lease — whether reinstatement of lessee a necessary pre-condition to recovery against the indemnifier
LEASES AND TENANCIES — lease term — expiration of lease — whether lease terminates upon deregistration of lessee — operation of holding over provision where lessee is deregistered — automatic renewal of lease where notice to terminate is not provided in accordance with terms of the lease
GUARANTEE AND INDEMNITY — scope of liability of guarantor/indemnifier — construction — guarantee of lessee’s obligations under a lease — whether guarantee also contained an indemnity — whether the guarantor assumed primary liability — whether guarantor could be held liable following deregistration of lessee — commercial purpose of the guarantee
Legislation Cited: Companies (New South Wales) Code, ss 381, 382, 458
Corporations Act 2001 (Cth), ss 459P, 462, 601AD, 601AH
Local Court Act 2007 (NSW), ss 29, 39, 40
Uniform Civil Procedure Rules 2005 (NSW), r 42.1
Cases Cited: Be Financial Pty Ltd as trustee for Be Financial Operations Trust v Das [2012] NSWCA 164
Canty v PaperlinX Australia Pty Ltd [2014] NSWCA 309
Electricity Generation Corporation v WoodsideEnergy Ltd; Woodside Energy Ltd v Electricity Generation Corporation (2014) 251 CLR 640; [2014] HCA 7
Gallagher Bassett Services NSW Pty Ltd v Murdock (2013) 86 NSWLR 13; [2013] NSWCA 386
GIO General Ltd (Agent for NSW Workcover Scheme) v Sabko Pty Ltd (2007) 70 NSWLR 743; [2007] NSWSC 251
In the matter of BMT & Associates Pty Ltd [2014] NSWSC 1082
Partners v Sampson [2002] NSWSC 383
Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14
R v PL [2009] NSWCCA 256; (2009) 199 A Crim R 199
Re Austral Family Homes Pty Ltd (in liq) (1992) 28 NSWLR 247
Re Morton; Ex parte Mitchell Products Pty Ltd [1996] FCA 828; (1996) 21 ACSR 497
Re Silverline Technologies Pty Ltd (In Liq) [2005] NSWSC 620; (2005) 192 FLR 261
Sweeney & Vandelaur Pty Ltd v BNY Australia Ltd (1993) 11 ACSR 356
Category: Principal judgment Parties: Michael Crawford (Plaintiff)
Demertjis & Ruhs Pty Ltd (Defendant)Representation: Counsel:
Solicitors:
J Pokoney (Plaintiff)
B Smith (Defendant)
Celtic Legal (Plaintiff)
Ignify Legal (Defendant)
File Number(s): 2023/296388 Decision under appeal
- Court or tribunal:
- Local Court
- Jurisdiction:
- Civil
- Date of Decision:
Keep reading for free
Create a free CaseChat account to read Crawford v Demertjis & Ruhs Pty Ltd and more:
- Read every judgment in full
- Ask AI and get answers linked to paragraphs
- See how each paragraph was cited in later cases
- Download judgments as PDF or Word
One click creates your free account or signs you in.
By continuing you agree to the Terms and Privacy Policy.
- Case
- [2024] NSWSC 48
- Decision Date
CaseChat Overview and Summary
The High Court considered the principles governing the grant of leave to appeal and assessed whether the grounds of appeal contained questions of mixed fact and law. The court held that the grounds of appeal did not purely involve questions of fact or law but rather a mix of both, which necessitated the court’s intervention. The Court examined the effect of the lessee's deregistration on the lease's obligations and the indemnifier's liability. It concluded that the deregistration of the lessee did not automatically terminate the lease and that the holding over provision could still apply. Furthermore, the court held that the indemnifier's liability was not necessarily extinguished by the deregistration of the lessee and that the indemnifier could still be held liable under the terms of the guarantee. The commercial purpose of the guarantee was also considered, reinforcing that the indemnifier assumed primary liability under the terms of the guarantee.
Ultimately, the High Court granted leave to appeal, finding that the appeal raised significant legal issues concerning the interpretation of lease agreements and the obligations of indemnifiers. The Court's decision clarified the effect of a lessee's deregistration on lease obligations and the continued liability of indemnifiers, providing guidance on the scope of guarantees and indemnities in similar future cases. The Court's judgment provided a definitive interpretation of the parties' rights and obligations under the lease agreement and the implications of the deregistration of the lessee.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.