Property Builders v Adelaide Bank [2011] NSWCA 329

The lender won against the borrower at trial and again on appeal. The guarantor won against the lender on appeal. There was then an argument on costs.

The guarantor wanted his costs paid by the bank. The bank argued there should be no order as to costs or that the guarantor’s costs should be paid by borrower. The bank pointed out that the great bulk of time was spent litigating the claim against the borrower. As the guarantor was the alter ego of the borrower, he had caused the costs to be incurred. The Court of Appeal rejected the lender’s arguments and held that the borrower should pay the lender’s costs and  the lender should pay the guarantor’s costs.

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