The defendants’ guaranteed a loan which was secured by mortgage over their property. When the borrowers defaulted the lender sought possession of the guarantors’ property to discharge the guarantee. The guarantors alleged they had not signed the guarantee or signed it without knowing its nature and affect, as well as misleading and deceptive conduct by the lender.
At a directions hearing Orders were made by consent that if the guarantors failed to comply with certain directions for the conduct of the proceedings, their defence would be dismissed in its entirety. The guarantors failed to comply in time. They applied to the Court to set aside or vary the Orders. No adequate reason was given for non-compliance and Justice Simpson refused to set aside the orders.