Australian Securities and Investments Commission v TAL Life Limited (No 2) [2021] FCA 193

Federal Court of Australia

Australian Securities and Investments Commission v TAL Life Limited (No 2) [2021] FCA 193 File number: VID 1360 of 2019

Judgment of: ALLSOP CJ

Date of judgment: 9 March 2021

Catchwords: CORPORATIONS – misleading or deceptive conduct –financial products – insurance – allegation that insurer had misled insured by making representations about insurer's right to delay the processing of the insured's claim and to withhold benefits under the policy until the insured provided an executed authority enabling the insurer to obtain and access the insured's medical records and Medicare and Pharmaceutical Benefits Scheme claims information – whether representation was made – whether representation was false or misleading – whether representation contravened s 1041H(1) of the Corporations Act 2001 (Cth) – whether representation contravened ss 12DA(1) and 12BD(1) of the Australian Securities and Investments Commission Act 2001 (Cth) – whether conduct was in connection with the supply of financial services – whether conduct was in relation to financial services – meaning of "financial services" – whether representation was made in connection with the issue of the policy – whether the process of claims handling is a service otherwise supplied in relation to the policy INSURANCE – whether insurer breached the duty of utmost good faith under s 13 of the Insurance Contracts Act 1984 (Cth) – where insured made an innocent non-disclosure and insurer avoided the policy – where insurer did not give the insured any notice of the investigation into the validity of her policy and did not give her an opportunity to address the insurer's concerns – where insurer alleged in policy avoidance letter that insured had breached her duty of good faith – where insurer threatened in policy avoidance letter to seek recovery of amounts paid under the policy HIGH COURT AND FEDERAL COURT – jurisdiction of the Federal Court – power to award declaratory relief – whether Australian Securities and Investments Commission lacks standing to seek declaratory relief for breach of s 13(2) of the Insurance Contracts Act 1984 (Cth) CONSTITUTIONAL LAW – judicial power of the Commonwealth – requirement for a "matter" – whether there is a "matter" before the Court – where parties to insurance contract agreed in settlement deed that contract was avoided ab initio – whether ASIC lacks standing to seek declaratory relief for breach of s 13(2) of the Insurance Contracts Act 1984 (Cth)