The appellants appealed a summary judgment granted in favour of the respondent trustee in bankruptcy on a guarantee signed by the appellants for the respondent's fees.
The motions judge had also directed a reference to the Registrar in Bankruptcy to determine the reasonable quantum of those fees.
The Court of Appeal dismissed the appeal, finding that the lack of independent legal advice was not a free-standing defence and there was no evidence the appellants misunderstood the guarantee.
The Court also upheld the motions judge's discretion under the Rules of Civil Procedure to direct a reference to the Registrar in Bankruptcy.