Leasefin Corporation Limited v Clarke, Killmier and Shepherd File No. SCGRG 91/3043 Judgment No. 3660 Number of Pages 8 Guarantee and Indemnity Judgments and Orders

Leasefin Corporation Limited sued Clarke, Killmier, and Shepherd for a debt of $200,000, secured by personal guarantees, after their company defaulted on a loan. The Full Court of the Supreme Court of South Australia considered an appeal against the summary judgment entered in favour of Leasefin. The legal issues were whether the appellants had established a defence on the merits and if the Master correctly exercised his discretion in granting summary judgment. The Court found that the appellants had not provided specific details to support their claims of a collateral agreement and breach by Leasefin, which were necessary to establish a reasonably arguable defence. The Court held that the appellants' affidavits were insufficiently specific and did not demonstrate a bona fide defence. The Full Court dismissed the appeal, affirming the judgment of the Master. The appellants were ordered to pay the principal sum of $200,000, with liberty reserved to the respondent to apply for interest and costs.