ONSITE RENTAL GROUP OPERATIONS PTY LTD -v- BROWNE [2014] WADC 73

Jurisdiction:	DISTRICT COURT OF WESTERN AUSTRALIA	Citation No:	[2014] WADC 73
Case No:	CIV:2412/2012	Heard:	24-25 & 27 FEBRUARY 2014
Coram:	GOETZE DCJ	Delivered:	23/05/14
Location:	PERTH
No of pages:	31	Judgment Part:	1 of 1
Result:	Judgment for the plaintiffs in the sum of $279,659.17
PDF Version

Parties:	ONSITE RENTAL GROUP OPERATIONS PTY LTD ONSITE INDUSTRIAL RENTALS AUSTRALIA PTY LTD ONSITE RENTALS PTY LTD GREGORY BRIAN BROWNE
Catchwords:	Debt owed by corporation Guarantee from director Correct identity of creditor Whether guarantee varied by allowing principal debtor to hire in excess of estimated monthly amount on credit application and by creditor extending payment terms beyond that specified thereby increasing risk of guarantor Whether provision in guarantee for revocation complied with Turns on own facts
Legislation:	Nil
Case References:	Alinta 2000 Ltd v Petkov [2012] WASCA 258 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd [1987] HCA 15; (1987) 162 CLR 549 Hickory Developments Pty Ltd v Brunswick Retail Investment Pty Ltd [2012] VSC 224 La Rosa v Nudrill Pty Ltd [2013] WASCA 18 Rinaldi & Parroni Pty Ltd v Precision Holdings Pty Ltd [1986] WAR 131

JURISDICTION : DISTRICT COURT OF WESTERN AUSTRALIA

IN CIVIL

LOCATION : PERTH CITATION : ONSITE RENTAL GROUP OPERATIONS PTY LTD -v- BROWNE [2014] WADC 73 CORAM : GOETZE DCJ HEARD : 24-25 & 27 FEBRUARY 2014 DELIVERED : 23 MAY 2014 FILE NO/S : CIV 2412 of 2012 BETWEEN : ONSITE RENTAL GROUP OPERATIONS PTY LTD

ONSITE INDUSTRIAL RENTALS AUSTRALIA PTY LTD

ONSITE RENTALS PTY LTD

Plaintiffs

AND

GREGORY BRIAN BROWNE

Defendant

Catchwords:

Debt owed by corporation - Guarantee from director - Correct identity of creditor - Whether guarantee varied by allowing principal debtor to hire in excess of estimated monthly amount on credit application and by creditor extending payment terms beyond that specified thereby increasing risk of guarantor - Whether provision in guarantee for revocation complied with - Turns on own facts

Legislation:

Nil

Result:

Judgment for the plaintiffs in the sum of $279,659.17

Representation:

Counsel:

Plaintiffs : Mr J M Healy

Defendant : Mr A P Rumsley

Solicitors:

Plaintiffs : Culshaw Miller Lawyers

Defendant : Alan Rumsley

Case(s) referred to in judgment(s):

Alinta 2000 Ltd v Petkov [2012] WASCA 258
Ankar Pty Ltd v National Westminster Finance (Australia) Ltd [1987] HCA 15; (1987) 162 CLR 549
Hickory Developments Pty Ltd v Brunswick Retail Investment Pty Ltd [2012] VSC 224
La Rosa v Nudrill Pty Ltd [2013] WASCA 18
Rinaldi & Parroni Pty Ltd v Precision Holdings Pty Ltd [1986] WAR 131

GOETZE DCJ

Introduction

1 The defendant, Mr Gregory Brian Browne, is and was at all material times, the sole director and secretary of Field Camp Services Pty Ltd.

2 On 22 October 2009, Mr Browne completed a pro forma commercial credit application on behalf of Field Camp Services seeking an ongoing trade credit facility from one company within a group of companies and which company, for…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2014] WADC 73
Decision Date

CaseChat Overview and Summary

Onsite Rental Group Operations Pty Ltd and others sued Mr Gregory Brian Browne for outstanding debts owed by Field Camp Services. Mr Browne had given a personal guarantee of the debts of Field Camp Services. The trial raised a number of issues, including the identity of the companies involved, the effect of variations to the terms of the credit facility and guarantee, and the validity of the revocation of the guarantee. The court found that the guarantee was valid and enforceable, and that Mr Browne was liable for the outstanding debts of Field Camp Services. The court rejected Mr Browne's arguments that the guarantee had been varied or revoked, and found that he had knowledge of the debts and had not objected to the variations in the credit terms. The court also found that the plaintiffs had established the correct identity of the companies involved, and that the guarantee was given to Onsite Rentals Pty Ltd. The court ordered Mr Browne to pay the outstanding debts of Field Camp Services, plus interest, to Onsite Rentals Pty Ltd.

Orders