Miller v Sotiropoulos

In *Miller v Sotiropoulos* [1997] NSWCA 204, the New South Wales Court of Appeal considered a dispute concerning the enforceability of a guarantee. The appellant, Mr Miller, sought to enforce a written guarantee provided by the respondent, Mr Sotiropoulos, in favour of a company. The central issue was whether the guarantee was valid and enforceable against Mr Sotiropoulos, particularly in light of certain alleged misrepresentations made by Mr Miller.

The Court was required to determine whether Mr Sotiropoulos was induced to enter into the guarantee by misleading or deceptive conduct on the part of Mr Miller, contrary to section 52 of the *Trade Practices Act 1974* (Cth). This involved assessing the nature of the representations made, their truthfulness, and whether they caused Mr Sotiropoulos to execute the guarantee. The Court also had to consider the legal effect of any such misrepresentation on the enforceability of the guarantee.

The Court of Appeal found that Mr Miller had made representations to Mr Sotiropoulos concerning the financial position of the company and the extent of Mr Sotiropoulos's liability under the guarantee. These representations were found to be misleading and deceptive. The Court held that because Mr Sotiropoulos was induced to enter into the guarantee by these misrepresentations, the guarantee was voidable at his election. The appeal was dismissed.