AMP Financial Planning Pty Ltd v CGU Insurance Limited [2004] FCA 1330

FEDERAL COURT OF AUSTRALIA

AMP Financial Planning Pty Ltd v CGU Insurance Limited [2004] FCA 1330

INSURANCE – policies of indemnity insurance – applicant licensed securities dealer – negligent investments made by "securities representatives" under the Corporations Law – settlements made by applicant with investors while liability to indemnify still reserved by respondent insurer and before any breach of policies – whether respondent liable under policies – whether applicant required to prove its legal liability to investors by admissible evidence – whether doctrines of estoppel or waiver available to applicant – whether respondent engaged in unconscionable conduct or misleading and deceptive conduct or breached obligation of utmost good faith – whether applicant liable to investors under s 819(2) of the Law – whether insured would have had a defence to claims by investors under s 819(4) of the Law – settlements made under pressure from Australian Securities and Investments Commission – whether settlements reasonable – whether claims within terms of policies – whether liability under policies for applicant's investigation and legal costs WORDS AND PHRASES – "civil liability claims" – "insured professional business practice" – "prudent uninsured"

Australian Securities and Investments Commission Act 2001 (Cth) ss 12CA, 12DA 12DB(1)(g) Corporations Law ss 94, 817, 819, 820 Insurance Contracts Act 1984 (Cth) s 13

Post Office v Norwich Union Fire Insurance Society Ltd [1967] 2 QB 363 at 374 cited Brice v J H Wakerbarth (Australasia) Pty Ltd [1974] 2 Lloyd's Rep 274 at 276 cited Unity Insurance Brokers Pty Limited v Rocco Pezzano Pty Limited (1998) 193 CLR 603 applied Edwards v Insurance Office of Australia Ltd (1933) 34 SR (NSW) 88 applied Parker v Lewis (1873) LR 8 Ch App 1035 applied The Distillers Company Bio-Chemicals (Australia) Pty Ltd v Ajax Insurance Co Ltd (1974) 130 CLR 1 applied General Omnibus Company Ltd v London General Insurance Co Ltd [1936] IR 596 cited Hurlock v Council of the Shire of Johnstone [2002] QCA 256 not followed C E Heath Underwriting & Insurance (Australia) Pty Ltd v Campbell Wallis Moule & Co Pty Ltd [1992] 1 VR 386 distinguished Nigel Watts Fashion Agencies Pty Limited v GIO General Limited (1995) 8 ANZ Insurance Cases 61-235 distinguished ACN 007 838 584 Pty Ltd v Zurich Australian Insurance Ltd (1997) 69 SASR 374 distinguished Walton Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 at 428-429 cited Commonwealth v Verwayen (1990) 170 CLR 394 at 441-442 cited New Zealand Pelt Export Co Ltd v Trade Indemnity New Zealand Ltd [2004] VSCA 163 at [96] – [99] cited Sargent v ASL Developments Ltd (1974) 131 CLR 634 at 642 applied Craine v Colonial Mutual Fire Insurance Co Ltd (1920) 28 CLR 305 at 326 applied Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd (2003) 197 ALR 153 applied CIC Insurance Ltd v Barwon Region Water Authority [1939] 1 VR 683 at 699 cited Newman v Financial Wisdom Ltd [2004] VSC 216 at [208] applied Lloyd v Grace, Smith & Co [1912] AC 716 cited Polkinghorne v Holland (1934) 51 CLR 143 cited Capricorn Financial Planners Pty Ltd v Australian Securities and Investments Commission (1999) 31 ACSR 46 cited CA & MEC McInally Nominees Pty Ltd v HTW Valuers (Brisbane) Pty Ltd (2001) 188 ALR 439 at [64] cited Pacific Carriers Ltd v BNP Paribas (2004) 78 ALJR 1045 at [22] cited Banco de Portugal v Waterlow [1932] AC 452 at 506 cited