Can plaintiff come after personal guarantor assets?

Hi all

Newbie here, have searched around but couldn't find answer to the question I have in mind which is somewhat similar to the situation described here. Anyone have knowledge in situation like this:

Let's say in summary I purchased a property under a discretionary trust with a company as trustee. I am the director and provides personal guarantee on the loan to buy the property.
The roof of the property fell off and injured the tenant, now the tenant is suing for amount much higher than the price of the property.
Would my personal assets be at risk as a personal guarantor to the loan?

thanks

 

The company purchased with you as director.

The personal guarantee relates only to the loan and given to the lender. The guarantor is not giving any guarantees to other credits of the company.
But that doesn't mean the director is not liable. They could still be liable by other legislation especially in relation to OHS type issues.

 

Thanks everyone, that's really helpful

 

If you have ever had to use that aspect of a policy the insurer will refer you to their consulting solicitors. Often a major law firm. They will aggressively defend the claim representing you and will spend a $1m to save $1m. They will pay that cost. But they work for the insurer not you. The injured party will need to fund their own case perhaps. That said the insurer may also find the claim is not covered by the policy and refuse the claim leaving you exposed. eg Declined cover through lack of disclosure about building condition. A P&B report may provide a reliable defence. A defect reported in that report may pose a concern.

It may be wise to seek independent legal advice on the policy terms and cover. It can be wise to adopt this approach so your legal adviser advises you on how to deal with the insurers appointed legal adviser. Its seems costly but can avoid claims being denied through ignorance or error.