This case concerned a guarantee given by a parent in favour of his son’s company. The guarantee was challenged and argued for the Appellant in the Court of Appeal on the basis of the recent landmark House of Lords decision in Royal Bank of Scotland v Etridge.
Etridge requires a number of steps to be taken by a lender in any case where a guarantee is being sought and obtained from a guarantor who does not have a commercial interest in a transaction, whose relationship between the principal debtor and himself is non commercial and who may have been subject to influence by the principal debtor. The creditor is put on enquiry as to the risk of undue influence in such a case and should act in such a way as to insulate itself from the consequences of undue influence.
This decision is the first occasion in which the Court of Appeal had considered fully the Etridge principles which have now been adopted into New Zealand law as a consequence of Hogan.
Rick Dees Ltd v Larsen [2005] 3 NZLR 538
Rick Dees Ltd v Larsen [2006] 2 NZLR 765 (CA)
Larsen v Rick Dees Ltd [2006] NZSC 36 (SC)
Settlement of conveyancing transactions by electronic transfer of funds
This case is concerned with the remote settlement of conveyancing transactions, the steps and means by which that is to be achieved, the requirements of notice by and to the parties and the effect of electronic payment of funds directly to the vendor’s solicitors trust account.
Redoute Securities Ltd. v Thomson (2008) 9NZCPR 212
