This case, GI 417 Pty Ltd v Quinn NSWSC 1191, heard in the Supreme Court of New South Wales on 10 October 2025, involved a company, GI 417 Pty Ltd, seeking to enforce a guarantee against Mr Simon John Quinn. Mr Quinn had provided this guarantee in support of the liabilities of 301 Castlereagh Street Pty Limited, a company he was associated with. The guarantee agreement also included a clause where Mr Quinn charged assets in his name as security, even those held on trust. The main aim of GI 417 Pty Ltd was to enforce this charge against a property in Jindabyne, which Mr Quinn owned as trustee for a discretionary trust. Mr Quinn contested that the charge covered this property or that it was enforceable. While the dispute over the property was set for a future hearing, Mr Quinn admitted his personal liability under the guarantee.
Key details of the case
- Case Name: GI 417 Pty Ltd v Quinn
- Citation: NSWSC 1191
- Court: Supreme Court of New South Wales
- Date of Hearing and Decision: 10 October 2025
- Judge: Parker J
- Plaintiff: GI 417 Pty Limited
- First Defendant: Simon John Quinn
- Second Defendant: AFSH Nominees Pty Limited
- Subject Matter: Enforcement of a guarantee and indemnity, specifically a guarantor’s liability in an undefended claim, leading to judgment for the plaintiff.
- Background: The case stemmed from a guarantee provided by Mr Quinn for the debts of 301 Castlereagh Street Pty Limited. This guarantee included a charge over Mr Quinn’s assets, including those held on trust, to secure his obligations. The plaintiff, GI 417 Pty Ltd, sought to enforce this charge against a property Mr Quinn held as trustee of a discretionary trust in Jindabyne.
- File Number: 2023/200460
Simple summary of the judgement
The core issue in this case was whether GI 417 Pty Ltd could enforce a charge against a property owned by Mr Simon John Quinn, which he held as the trustee of a discretionary trust. This charge was part of a guarantee agreement Mr Quinn had entered into to back the financial obligations of 301 Castlereagh Street Pty Limited. Essentially, Mr Quinn had pledged his assets, including those held in trust, as security for his promise to guarantee the company’s debts.
GI 417 Pty Ltd brought legal action primarily to enforce this charge over a property located in Jindabyne. Mr Quinn, however, argued that the charge did not extend to this specific property or, even if it did, that it wasn’t enforceable. While this argument about the property and trust was set to be heard at a later date, Mr Quinn did not dispute his personal liability under the original guarantee. His solicitors had actually conceded that there was no reason for the court not to issue a judgment against him personally for the amount owed.
On 10 October 2025, when the matter was before the court, the plaintiff presented an affidavit detailing the exact amount Mr Quinn owed, which came to $12,548,768. Given Mr Quinn’s admission of personal liability, the court, through Justice Parker, entered a judgment in favour of GI 417 Pty Ltd against Mr Quinn for this substantial sum. The broader issues concerning the charge over the Jindabyne property and any cross-claims were deferred for a future hearing scheduled for November.
Q&A
Is it legal to charge assets held in trust as security for a personal guarantee?
It can be legal if the guarantee agreement explicitly includes such a provision and is properly drafted. However, enforceability can be complex and may depend on the specific terms of the trust and the guarantee, as well as the laws governing trusts and guarantees. In this case, the plaintiff sought to enforce the charge, suggesting it was permissible under the agreement.
What happens if a guarantor’s personal liability is admitted but the asset used as security is in dispute?
The court can still enter judgment for the admitted personal liability, as seen in this case where judgment was granted for $12,548,768. Disputes over the security or its enforceability are typically dealt with separately and may proceed to a later hearing, as was planned for the Jindabyne property in this instance.
What is a guarantee?
A guarantee is a promise by one party (the guarantor) to be responsible for the debts or obligations of another party (the principal debtor) if the principal debtor fails to meet them.
What is a charge over assets?
A charge over assets is a form of security that gives a lender the right to take possession of specific assets if the borrower defaults on their loan or other obligations.
What is an indemnity?
An indemnity is an agreement where one party agrees to compensate another party for any loss or damage they may suffer.
What is an ‘ex tempore’ judgment?
An ‘ex tempore’ judgment is a judgment given orally by the judge at the conclusion of the hearing, often based on a transcript of the proceedings. It may be revised and issued in writing later.
What does ‘undefended claim’ mean?
An undefended claim means that the defendant has not presented a defence or has admitted liability, allowing the court to proceed to judgment without a full trial on the merits of the claim.
What is a cross-claim?
A cross-claim is a claim made by a defendant against the plaintiff or against another defendant in the same legal action.
What is a discretionary trust?
A discretionary trust is a trust where the trustee has the power to decide how the trust income and capital are distributed among a range of beneficiaries.
Can assets held on trust be charged as security for personal debts?
Generally, a trustee cannot use trust assets to secure their personal debts unless the trust deed specifically allows it or the beneficiaries consent. The terms of the trust deed are crucial in determining this. Mr Quinn’s agreement to charge assets held on trust suggests this was a specific term of his guarantee.
What is the significance of the file number 2023/200460?
The file number is a unique identifier for the legal proceedings within the court system. It helps in tracking and referencing the case.
What does ‘catchwords’ mean in a court judgment?
Catchwords are a brief summary of the key legal issues or topics covered in a court judgment, designed to help in searching and identifying relevant cases.
What does it mean if solicitors give notice of ceasing to act?
It means the solicitors are seeking the court’s permission to withdraw from representing their client. They typically remain on the record until the court formally allows them to cease acting, ensuring the client is not left unrepresented without notice.
What is the implication of conceding personal liability?
Conceding personal liability means the defendant accepts they are personally responsible for the debt or obligation, simplifying the court’s task in entering judgment against them for that amount.
What is the role of an affidavit in court proceedings?
An affidavit is a written statement confirmed by oath or affirmation, used as evidence in court. In this case, it was used to quantify the amount owing under the guarantee.
You can find more simplified NSW Supreme Court cases like this one at NSW Supreme Court Cases. The original judgment can be viewed at GI 417 Pty Ltd v Quinn NSWSC 1191.