Onley v Catlin Syndicate Ltd as the Underwriting Member of Lloyd's Syndicate 2003 [2018] FCAFC 119

FEDERAL COURT OF AUSTRALIA

Onley v Catlin Syndicate Ltd as the Underwriting Member of Lloyd's Syndicate 2003 [2018] FCAFC 119 File numbers: NSD 63 of 2018 NSD 448 of 2018

Judges: ALLSOP CJ, LEE AND DERRINGTON JJ

Date of judgment: 3 August 2018

Catchwords: INSURANCE – Defence Costs extension – payable until wrongful act determined by judgment, adjudication or admission – whether implication that insurer prevented from relying on rights consequent upon insured's fraudulent non-disclosure pending judgment, adjudication or admission of wrongful act CONTRACT – Insurance policy – agreement to pay defence costs until alleged wrongful acts not covered by policy are determined by judgment adjudication or admission – whether insurer prevented from avoiding policy for fraudulent non-disclosure – whether party able to contract out of the consequences of their own fraud

Legislation: Criminal Code Act 1995 (Cth) Federal Court Rules 2011 (Cth) Insurance Contracts Act 1984 (Cth) Proceeds of Crimes Act 2002 (Cth) Evidence Act 1995 (NSW)

Cases cited: Advance (NSW) Insurance Agencies Pty Ltd v Matthews (1989) 166 CLR 606 Alexander Stenhouse Ltd v Austcam Investments Pty Ltd (1993) 67 ALJR 421 Carter v Boehm (1776) 3 Burr 1905; 97 ER 1162 CGU Insurance Ltd v AMP Financial Planning Pty Ltd (2007) 235 CLR 1 Chardon v Bradley [2017] QCA 314 Duncombe v Porter (1953) 90 CLR 295 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 343 ALR 58 Electricity Generation Corporation t/as Verve Energy v Woodside Energy Ltd (2014) 251 CLR 640 Environment Protection Authority v Caltex Refining Co Pty Ltd (1993) 178 CLR 477 Franklins Pty Ltd v Metcash Ltd [2009] 76 NSWLR 603 HIH Casualty and General Insurance Ltd v Chase Manhattan Bank [2003] 2 Lloyd's Rep 61 Jones v Provincial Insurance Co (1857) 3 CBNS 65; 140 ER 662 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104 National General Insurance Co Ltd v Chick (1984) 3 ANZ Ins Cas 60-579 Permanent Trustee Australia Limited v FAI General Insurance Company Limited (in liq) (2003) 214 CLR 514 Simic v New South Wales Land and Housing Corp (2016) 260 CLR 85 Southern Cross Assurance Co Ltd v Australian Provincial Assurance Assn Ltd (1939) 39 SR (NSW) 174; 56 WN (NSW) 77 Todd v Alterra at Lloyd's Ltd (2016) 239 FCR 12 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 Weir Services Australia Pty Ltd v AXA Corporate Solutions Assurance [2018] NSWCA 100 Wilkie v Gordian Runoff Limited (2005) 221 CLR 522 Derrington D and Ashton R, The Law of Liability Insurance (3rd ed, LexisNexis, 2013)