Argo Managing Agency Ltd for and on behalf of the underwriting members of Lloyd's Syndicate 1200 v Quintis Ltd (subject to deed of company arrangement) [2022] FCAFC 86

Federal Court of Australia

Argo Managing Agency Ltd for and on behalf of the underwriting members of Lloyd's Syndicate 1200 v Quintis Ltd (subject to deed of company arrangement) [2022] FCAFC 86 Appeal from: Quintis Ltd (subject to deed of company arrangement) v Certain Underwriters at Lloyd's London Subscribing to Policy Number B0507N16FA15350 [2021] FCA 19 Quintis Ltd (subject to deed of company arrangement) v Certain Underwriters at Lloyd's of London Subscribing to Policy Number B0507N16FA15350 (No 2) [2021] FCA 327

File numbers: NSD 390 of 2021 NSD 391 of 2021

Judgment of: ALLSOP CJ, MIDDLETON AND YATES JJ

Date of judgment: 19 May 2022

Catchwords: INSURANCE – directors and officers' liability insurance – four policies of insurance – amount of cover for "Entity Securities Liability Optional Extension" ("Side C cover") – whether Side C cover sub-limited to primary policy – whether policies should be rectified – whether up to $50 million in Side C cover – Lloyd's insurance market –principles applicable to rectification of insurance policies – policies represent bundle of contracts between insured and insurers EQUITY – rectification – consideration of relevant principles – standard of proof – policies represent bundle of contracts between the insured and insurer –volumes of contemporaneous material APPEAL – whether relevant parties held a common intention – weight to be given to trial judge's advantage where no witnesses and assessing inferences – principles in Aldi Foods Pty Ltd v Moroccanoil Israel Ltd (2018) 261 FCR 301 applied