Lavin & Anor v. Toppi & Ors

Lower Court Judgment

23/05/2014 Supreme Court of New South Wales (Court of Appeal) (Macfarlan, Emmett, Leeming JJA)

[2014] NSWCA 160

Catchwords

Equity – Contribution between co-sureties – Appellants paid lesser amount, pursuant to guarantee, than respondents who were co-sureties – Creditor Bank granted appellants covenant not to sue – NSW Court of Appeal held that contribution in equity was available to respondents – Whether creditor’s covenant not to sue has effect upon rights of contribution which arise between co-sureties – Whether co-surety, having obtained covenant not to sue, shares with other co-sureties co-ordinate liabilities of the same nature and extent so as to give rise to right to contribution as between co-sureties.

Short Particulars