Equititrust Limited v Boyle & Anor. Griffith Development Company Pty Limited v Equititrust Limited

The dispute in this case involves Equititrust Limited, Griffith Development Company Pty Limited, and two individual defendants, Boyle and an unnamed party. The primary issue before the court was the enforceability of a Credit Facility Deed, a Mortgage, and a Deed of Guarantee & Indemnity, particularly in the context of a default by Griffith Development Company Pty Limited under the loan agreement. The secondary issue was whether the lender, Equititrust, was required to sell the mortgaged property before calling on the guarantors to pay under the Deed of Guarantee & Indemnity. Additionally, the court needed to determine whether a guarantor could be held liable under the deed if there was a failure to pay when demanded, and if there was any basis for a claim that Equititrust Limited had made a representation that would exempt the guarantors from liability.

The court found that there had been no effective variation of the Deeds in question, and therefore, the original terms of the agreements remained enforceable. The court held that the lender, Equititrust, was not obligated to sell the mortgaged property before calling on the guarantors to pay under the Deed of Guarantee & Indemnity. Furthermore, the court dismissed the claim that Equititrust Limited had made a representation that would exempt the guarantors from liability. The court ruled that the guarantors were indeed liable to pay the amount claimed under the deed, as they had failed to pay when demanded by Equititrust.

The court's reasoning was based on the clear and unambiguous terms of the Credit Facility Deed, Mortgage, and Deed of Guarantee & Indemnity, which did not provide for any variation or exemption from the guarantors' obligations. The court also found that there was no evidence to support the claim that Equititrust had made any representation that would alter the guarantors' liability. As a result, the court ruled that the guarantors were liable to pay the amount claimed by Equititrust, and that Equititrust was not proceeding against Boyle.