Hakea Holdings Pty Ltd v Neon Underwriting Limited for and on behalf of the Underwriting Members of Lloyds Syndicate 2468 [2023] FCAFC 34

Federal Court of Australia

Hakea Holdings Pty Ltd v Neon Underwriting Limited for and on behalf of the Underwriting Members of Lloyds Syndicate 2468 [2023] FCAFC 34 Appeal from: Hakea Holdings Pty Ltd v McGrath (No 2) [2022] FCA 995

File number: NSD 804 of 2022

Judgment of: COLVIN, BUTTON AND JACKMAN JJ

Date of judgment: 10 March 2023

Catchwords: INSURANCE - Directors and Officers liability insurance - where policy excludes liability for loss in connection with a claim arising out of or attributable to or in connection with any director gaining any personal profit or advantage to which he or she was not legally entitled - where exclusion subject to a proviso that it shall only apply if such profit or advantage is established by admission or adjudication in any proceedings - where appellants allege error by primary judge in finding that exclusion clause applies - consideration of meaning of personal advantage - consideration of meaning of not legally entitled - where alleged contravention of s 182(1) and s 180(1) of the Corporations Act 2001 (Cth) - consideration of United States cases regarding exclusion clause - where policy is a claims made policy - where insurer contends primary judge should have found that claim was not made in period of insurance - where demand made on the director by email notification - whether email notification received by the director within the period of insurance - consideration of meaning of received - appeal dismissed

Legislation: Corporations Act 2001 (Cth) ss 180, 182, 459E Evidence Act 1995 (Cth) s 161 Insurance Contracts Act 1984 (Cth) s 54

Cases cited: Alstrin v St Paul Mercury Insurance Co 179 F.Supp. 2d 376 (2002) Australian Securities and Investments Commission v Adler [2002] NSWSC 171 Brown & Lacounte LLP v Westport Insurance Corporation 307 F.3d 660 (2002) Chew v The Queen (1992) 173 CLR 626 Codelfa Construction Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500 Doyle v Australian Securities and Investments Commission [2005] HCA 78; (2005) 227 CLR 18 Doyle v Australian Securities and Investments Commission [2005] WASCA 17 Drayton v Martin (1996) 67 FCR 1 FAI General Insurance Co Ltd v Australian Hospital Care Pty Ltd [2001] HCA 38; (2001) 204 CLR 641 Impact Funding Solutions Ltd v AIG Europe Insurance Ltd [2016] UKSC 57; [2017] AC 73 Jarvis Christian College v National Union Fire Insurance Company of Pittsburgh, Pennsylvania 197 F.3d 742 (1999) King v McKean & Park [2002] VSC 350; (2002) 12 ANZ Ins Cas 61-534 LCA Marrickville Pty Limited v Swiss Re International SE [2022] FCAFC 17; (2022) 290 FCR 435 Lewis v Nortex Pty Ltd (in liq) [2004] NSWSC 1143 National Provincial Bank Ltd v Ainsworth [1965] AC 1175 Nicholls v Zurich American Insurance Group 244 F.Supp 2d 1144 (2003) Quintano v BW Rose Pty Ltd [2008] NSWSC 793 Re St Paul Fire & Marine Insurance Co & Guardian Insurance Co of Canada (1984) 1 DLR (4th) 342 Selected Seeds Pty Ltd v QBEMM Pty Ltd [2010] HCA 37; (2010) 242 CLR 336 Simar Transit Mixers Pty Ltd (in liq) v Baryczka (1998) 28 ACSR 238 Triden Properties Ltd v Capita Financial Group Ltd (Unreported, NSWCA, 15 November 1995) Weir Services Australia Pty Ltd v AXA Corporate Solutions Assurance [2018] NSWCA 100; (2018) 359 ALR 314 West Wake Price & Co v Ching [1957] 1 WLR 45 Whitlam v Australian Securities and Investments Commission [2003] NSWCA 183; (2003) 57 NSWLR 559 Wilkie v Gordian Runoff Ltd [2005] HCA 17; (2005) 221 CLR 522 Wintermute v Kansas Bankers Surety Co 630 F.3d 1063(2011) Woodlawn Capital Pty Ltd v Motor Vehicles Insurance Ltd [2016] NSWCA 28; (2016) 111 ACSR 377