George Hudson Holdings Ltd v Rudder

George Hudson Holdings Ltd (the appellant) appealed to the High Court of Australia from a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's liability for certain payments under a deed of guarantee and indemnity. The respondent, Rudder, sought to enforce the guarantee against the appellant in relation to debts owed by a company called Hudson & Co.

The High Court was required to determine whether the appellant was liable under the deed of guarantee and indemnity for the full amount of the debts owed by Hudson & Co. to the respondent, or whether its liability was limited by the terms of the deed. Specifically, the court had to consider the proper construction of clause 3 of the deed, which purported to limit the appellant's liability.

The court held that clause 3 of the deed was void for uncertainty. The language used in the clause was ambiguous and did not clearly define the extent of the appellant's liability, rendering it impossible to ascertain the intended limitations. Consequently, the appellant was liable under the deed of guarantee and indemnity for the full amount of the debts owed by Hudson & Co. to the respondent.

The appeal was dismissed.