Buzzle to remain good law

The case of Buzzle v Apple was good news for lenders, indicating that they do not become shadow directors merely by virtue of placing conditions on their continued support of debtors in financial strife.

The judgement struck a commercially sensible balance between the interests of borrowers and lenders. That balance allows lenders to protect their financial interests when dealing with financially insecure debtors without then being forced to assume general liability for the acts of the debtor company.

The period for applying for special leave to appeal the decision to the High Court has now lapsed and no application has been made. The result is that the case remains good law in NSW courts and that it is likely to be followed in other courts.

For more information on this important case, see the article by Partner Michael Quinlan and Lawyer Amy Spira in this month's Law Society Journal or see our Focus article.