A company called GI 417 Pty Ltd took a fella named Simon John Quinn to court because he had personally guaranteed a loan for another company he was involved with, 301 Castlereagh Street Pty Limited. When the company couldn’t pay up, GI 417 went after Mr Quinn to get their money back. Mr Quinn had agreed to use his assets, even property held in a trust, as security. The main argument was over whether a property he owned in Jindabyne through a trust could be taken to cover the debt. Even though his lawyers stopped representing him, he never denied he owed the money personally. The court decided quickly on that part and ordered him to pay over $12.5 million straight away, leaving the issue of the Jindabyne property to be sorted out later.
Key details of the case
- Case Number: 2023/200460
- Case Name: GI 417 Pty Ltd v Quinn
- Court: Supreme Court of New South Wales, Equity Division
- Judge: Parker J
- Date of Decision: 10 October 2025
- Plaintiff: GI 417 Pty Limited
- First Defendant: Simon John Quinn
- Second Defendant: AFSH Nominees Pty Limited
- People Involved:
- Simon John Quinn: The guarantor who was personally liable. He was associated with the company 301 Castlereagh Street Pty Limited.
- Parker J: The judge presiding over the case.
- P Newton: Counsel for the plaintiff, GI 417 Pty Ltd.
- Mr Cerne: Solicitor who previously appeared for Mr Quinn.
- Companies and Firms Involved:
- GI 417 Pty Ltd: The lender/plaintiff seeking to recover the debt.
- 301 Castlereagh Street Pty Limited: The company that owed the money and for which Mr Quinn provided a guarantee.
- AFSH Nominees Pty Limited: The second defendant, also involved in the proceedings.
- ERA Legal: Solicitors for the plaintiff.
- Matthew Dalton Lawyers: Solicitors who were on the record for Mr Quinn but had given notice of ceasing to act.
Simple summary of the case
This court case is all about a personal guarantee that went wrong. A bloke named Simon John Quinn acted as a guarantor for a company he was involved in, called 301 Castlereagh Street Pty Limited. This means he promised to pay the company’s debts to another company, GI 417 Pty Ltd, if 301 Castlereagh Street couldn’t.
The guarantee agreement he signed was pretty serious. It included a clause that said he would use his personal assets as security for the debt. This wasn’t just limited to things he owned in his own name; it also covered assets he held in a trust. The main reason GI 417 took him to court was to get their hands on a property in Jindabyne that Mr Quinn owned through a discretionary trust, to cover the company’s debt.
Mr Quinn tried to argue that the charge didn’t apply to the Jindabyne property or that it couldn’t be enforced, and he even filed a cross-claim about this specific issue. However, things got a bit tricky for him when his lawyers decided they would stop representing him just before the hearing.
Despite the argument over the property, Mr Quinn never actually denied that he was personally on the hook for the money owed. His own lawyer admitted in a previous court appearance that there was no good reason for the court not to order him to pay up personally. So, when the case came before the judge on 10 October 2025, it was a pretty straightforward decision on that front. The plaintiff provided an affidavit confirming the total amount owing was a whopping $12,548,768. The judge didn’t mess around and immediately ordered judgment for the plaintiff, meaning Mr Quinn was legally required to pay that full amount. The more complicated stoush over whether the Jindabyne property can be taken to pay off the debt was put off for a separate hearing scheduled for the next month. You can read the full judgment on the AustLII website.
Q&A
- Is it legal for a personal guarantee to include assets held in a trust?
Yes, it can be. In this case, the agreement Mr Quinn signed specifically included assets held on trust as security. It’s crucial to read the fine print of any guarantee you sign. - What happens if I sign a personal guarantee for a company?
You become personally responsible for the company’s debt. If the company can’t pay, the lender can come after your personal assets, like your house or savings, to get their money back. - Can I argue that a guarantee isn’t enforceable?
You can try, as Mr Quinn did regarding the property. However, if the guarantee is properly written and signed, it can be very difficult to get out of the core obligation to pay. - What does it mean when a solicitor ‘ceases to act’?
It means they are no longer representing their client. This can happen for various reasons, but it can put the person without a lawyer in a tough spot in court. - Is a verbal agreement to be a guarantor legally binding?
Generally, for guarantees to be enforceable, especially involving large sums or property, they must be in writing. Relying on a verbal promise is risky for a lender. - Can a lender take my family home if it’s in a trust?
It depends on the wording of the guarantee and the type of trust. If you’ve signed a guarantee that specifically charges trust assets, as happened here, your family home could be at risk. - Does the court have to wait to decide on everything at once?
No. The judge in this case made an immediate decision on the part that wasn’t disputed (Mr Quinn’s personal liability for the debt) and scheduled the more complex part (the property argument) for a later hearing. - What is a ‘discretionary trust’?
It’s a type of trust where the trustee has the power to decide which of the beneficiaries gets what from the trust’s assets. People often use them to protect assets, but this case shows they aren’t always bulletproof. - Is it common for business owners to give personal guarantees?
Yes, very common. Lenders often won’t lend money to small or medium-sized companies without a personal guarantee from the directors as security. - What should I do before signing a personal guarantee?
Always get independent legal advice. A lawyer can explain exactly what you’re signing and what assets you are putting at risk. Don’t just sign it because the bank or a business partner tells you to. - If a company goes bankrupt, am I still liable under a personal guarantee?
Yes. The company’s bankruptcy doesn’t cancel your personal guarantee. The lender will then come directly to you for the money. - Can I limit the amount I guarantee?
Yes, it’s possible to negotiate a limit on a guarantee, so you are only liable for a specific amount rather than the entire debt. This is something to discuss before signing. - Does my spouse have to know I’ve signed a guarantee?
Legally, you might not have to tell them, but if you’ve put shared assets like a family home at risk, it will definitely affect them. It’s wise to be transparent. - What is a ‘cross-claim’?
It’s when a defendant in a lawsuit files their own claim back against the plaintiff. In this instance, Mr Quinn filed one about the issue of the property charge. - Where can I find more simplified summaries of court cases?
For more easy-to-understand breakdowns of legal judgments, you can check out more SAFLII simplified cases.