| IN THE SUPREME COURT OF NEW ZEALAND I TE KŌTI MANA NUI |
| SC 104/2019 [2020] NZSC 118 |
| BETWEEN | BRYCE BROUGHAM |
| AND | CHRISTINE ANNA ELIZABETH REGAN AND MARK JEFFEREY TUFFIN |
| Hearing: | 9 June 2020 |
Court: | Winkelmann CJ, William Young, Glazebrook, O’Regan and Williams JJ |
Counsel: | F E Geiringer and J K Mahuta‑Coyle for Appellant |
Judgment: | 30 October 2020 |
JUDGMENT OF THE COURT
A The appeal is allowed.
BThe orders made in the Court of Appeal are set aside and judgment is entered for the appellant.
CThe respondents must pay the appellant costs of $25,000 plus usual disbursements.
DThe award of costs and disbursements in the lower Courts in favour of the first respondents is set aside. Such costs and disbursements should be reassessed by the Court of Appeal in light of this judgment. The award of costs in favour of the second respondent stands.
EThe first respondents’ interlocutory application to adduce further evidence is dismissed.
____________________________________________________________________
REASONS
(Given by O’Regan J)
Guarantee “in writing”
The issue in this case is whether the appellant, Mr Brougham, is liable as a guarantor of a loan made by the trustees of the Winchester Trust (the trustees) to B & R Enterprises Ltd (the company).[1] The principal issue is whether the document signed by Mr Brougham complied with the requirement set out in s 27(2) of the Property Law Act 2007 that a contract of guarantee must be “in writing”.
[1]The first respondents are the current trustees of the Winchester Trust. At the relevant time the trustees were Ms Regan and her daughter, the second respondent, Ms Dey.
The case began in the District Court, which determined that Mr Brougham was not liable as guarantor.[2] That decision was upheld by the High Court.[3] The Court of Appeal allowed the trustees’ appeal to that Court and entered judgment against Mr Brougham for the principal of the loan together with interest and awarded indemnity costs.[4]
[2]Regan v Brougham [2016] NZDC 18553 (Judge Ross) [DC judgment].
[3]Regan v Brougham [2017] NZHC 1091 (Simon France J) [HC judgment].
[4]Regan v Brougham [2019] NZCA 401, [2020] 2 NZLR 299 (French, Collins and Wild JJ) [CA judgment] at [38]–[39]. Leave to appeal to the Court of Appeal was granted in Regan v Brougham [2018] NZCA 157. Simon France J had earlier dismissed an application for leave to appeal to the Court of Appeal: Regan v Brougham [2017] NZHC 2464.
This Court granted Mr Brougham leave to appeal, the approved question being whether the Court of Appeal was right to allow the appeal to that Court.[5]
Facts
The loan made by the trustees to the company was recorded in a Term Loan Agreement (the loan agreement) which was on the printed Auckland District Law Society form.
The company was established shortly before the loan…
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- Brougham v Regan [2020] NZSC 118
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- [2020] NZSC 118
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