A guarantor is not unarguably a privy of the principal debtor for the purposes of issue estoppel, and the consent dismissal of the debtor's proceedings (following failure to provide security for costs) does not necessarily preclude the guarantor from raising the same defences when sued under the guarantee. Where the debtor is in liquidation and the creditor's rights have merged with judgment, the guarantor may raise an equitable set-off or cross-claim available to the debtor without joining the debtor. Payments made by a guarantor in reliance on the creditor's alleged misleading and deceptive conduct are personal losses, not reflective loss of the company.
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