Solicitors' Liability Committee v Gray and Winter [1996] FCA 1182

JUDGMENT No. wuLL& dol 5.2.

FEDERAL COURT OF AUSTRALIA ) VICTORIAN REGISTRY ) No VG 546 of 1996 GENERAL DIVISION )

BETWEEN: THE SOLICITORS' LIABILITY COMMITTEE Applicant

AND: GARRICK LEWIS GRAY and MICHAEL FREDERICK WINTER (trading as GRAY & WINTER) Respondent

COURT: FINN J PLACE: MELBOURNE DATE: 9 DECEMBER 1996

EX TEMPORE REASONS FOR JUDGMENT

NOT FOR DISTRIBUTION NO POINT OF PRINCIPLE

FEDERAL COURT OF AUSTRALIA ) VICTORIAN REGISTRY ) No VG 546 of 1996 GENERAL DIVISION )

BETWEEN: THE SOLICITORS' LIABILITY COMMITTEE

Applicant

AND: GARRICK LEWIS GRAY and MICHAEL FREDERICK WINTER (trading as GRAY & WINTER) Respondent

COURT: FINN J PLACE: MELBOURNE DATE: 9 DECEMBER 1996

EX TEMPORE REASONS FOR JUDGMENT

This application is to vary an order of Jenkinson J made on 21 October 1990, staying execution of a judgment of Olney J, of 9 August 1996, in which it was ordered that the present appellant - the Solicitors' Liability Committee - pay the respondents Garrick Lewis Gray and Michael Frederick Winter, trading as Gray & Winter - $500,000 plus the costs incurred in defending other proceedings. I am informed that the aggregate

value of that judgment is now in excess of $1.3 million.

The appellant carries on the business (inter alia) of

providing professional indemnity insurance for solicitors. The

judgment I have mentioned was in respect of a claim made under an indemnity contract had by the respondents with the appellant. The principal ground of appeal relied upon against the judgment, I am informed, is that the trial judge erred in finding that the activity of the respondents which gave rise to the indemnity claim on the appellant was one which fell within

the scope of the insurance contract itself.

Because of its bearing on this matter I should note that the respondents were directors, and Mr Gray remains a director, of a group of companies of which two, Graywinter Properties Pty Ltd ("Properties" ) and Graywinter Management Pty Ltd ("Management") are of present relevance. It is agreed that these companies are liable respectively to the Deputy Commissioner of Taxation in the sums of $261,829.11 and $106,949.91 in respect of unpaid group tax deductions from employee salaries and wages. These liabilities are the subject of statutory demands against the companies in other proceedings