AAI Limited trading as Vero Insurance v Technology Swiss Pty Ltd [2021] FCAFC 168

Federal Court of Australia

AAI Limited trading as Vero Insurance v Technology Swiss Pty Ltd [2021] FCAFC 168 Appeal from: Technology Swiss Pty Ltd v AAI Limited trading as Vero Insurance [2021] FCA 95

File number: NSD 212 of 2021

Judgment of: PERRAM, JAGOT AND DERRINGTON JJ

Date of judgment: 17 September 2021

Catchwords: INSURANCE – subrogation and recoupment – whether and to what extent insurer entitled to recoup from proceeds of third party claim – where insurer paid global sum to insured in settlement of claim on policy of indemnity – whether terms of settlement deed revealed mutual intention that part or all of sum was in respect of loss for which insured claimed on the indemnity

Legislation: Marine Insurance Act 1909 (Cth) ss 68, 85(2) and 87 Federal Court Rules 2011 (Cth) r 26.12

Cases cited: Advanced Arbor Services Pty Limited v Phung [2009] NSWSC 1331 Allied Mills Industries Pty Ltd v Commissioner of Taxation (1989) 20 FCR 288 Allsop v Commissioner of Taxation (1965) 113 CLR 341 Bailey v Marinoff (1971) 125 CLR 529 Banque Financière de la Cité v Parc (Battersea) Ltd [1999] 1 AC 221 Body Corp No 205963 v Leuschke Group Arch (in liq) (2009) 15 ANZIC ¶61-804 Bofinger v Kingsway Group Ltd (2009) 239 CLR 269 Bucic v Arnej Pty Ltd (No 4) [2019] VSC 527 BUPA Australia Pty Ltd v Shaw (2014) 18 ANZIC ¶61-989 Byrnes v Kendall (2011) 243 CLR 253 Caltabiano v Electoral Commission of Queensland (No 1) [2010] 1 Qd R 100 Castellain v Preston (1883) 11 QBD 380 Commissioner of Taxation v CSR Ltd (2000) 104 FCR 44 DA Constable Syndicate 386 v Auckland District Law Society (2010) 16 ANZIC ¶61-850 Friend v Comcare [2021] FCA 837 GPS Power v Gardiner Willis & Associates (2001) 11 ANZIC ¶61-482 GRE Insurance Ltd v QBE Insurance Ltd [1985] VR 83 ICI Australia Operations Pty Ltd v Workcover Authority of New South Wales (2004) 60 NSWLR 18 Insurance Commission (WA) v Kightly (2005) 30 WAR 380 Insurance Corp of British Columbia v Teck Metals Ltd [2020] BCJ No 295 John Edwards & Co v Motor Union Insurance Co Ltd [1922] 2 KB 249 King v Victoria Insurance Company Ltd [1896] AC 250 Ledingham v Ontario (Hospital Services Commission) [1975] 1 SCR 332 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579 McLaurin v Federal Commissioner of Taxation (1961) 104 CLR 381 National Fire Insurance Co v McLaren (1886) 12 OR 682 Orica Australia v Limit (No 2) (2011) 16 ANZIC ¶61-877 Qureshi (Guardian ad litem of) v Nickerson (1991) 77 DLR (4th) 1 Re Palmdale Insurance Ltd (in liq) (No 3) [1986] VR 439 State Government Insurance Office (Qld) v Brisbane Stevedoring Pty Limited (1969) 123 CLR 228 Sydney Turf Club v Crowley [1971] 1 NSWLR 724 Technology Holdings Limited v IAG New Zealand Limited (2009) 15 ANZIC ¶61-786 Wabbits Pty Limited v Godfrey [2009] NSWSC 1299 Wellington Insurance Co Ltd v Armac Diving Services Ltd (1987) 38 DLR (4th) 462 WorkPac Pty Ltd v Rossato (2020) 278 FCR 179 Clarke M, The Law of Insurance Contracts (6th ed, Informa, 2009) Derrington DK & Ashton RS, The Law of Liability Insurance (3rd ed, LexisNexis, 2013) Edelman J & Bant E, Unjust Enrichment (2nd ed, Hart, 2016) Meagher RP, Heydon JD & Leeming MJ, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (4th ed, Butterworths, 2002)