Steggles Pty Ltd v Sorcevski

Steggles Pty Ltd appealed to the New South Wales Court of Appeal against a decision of the District Court of New South Wales. The dispute concerned the enforceability of a guarantee provided by Mr Sorcevski in favour of Steggles Pty Ltd.

The primary legal issue before the Court of Appeal was whether the guarantee, which was executed by Mr Sorcevski, was valid and enforceable against him, notwithstanding certain alleged misrepresentations made by Steggles Pty Ltd. Specifically, the court had to consider whether any such misrepresentations, if proven, would vitiate the guarantee.

The Court of Appeal found that the District Court had erred in its assessment of the evidence. It held that the alleged misrepresentations did not, in law, amount to a defence that would discharge Mr Sorcevski from his obligations under the guarantee. The court applied the principles of contract law relating to guarantees and misrepresentation, concluding that the guarantee was valid and binding. The appeal was allowed, and the judgment of the District Court was set aside.