Quintis Ltd (Subject to Deed of Company Arrangement) v Certain Underwriters at Lloyd's London Subscribing to Policy Number B0507N16FA15350 (No 2) [2021] FCA 327

Federal Court of Australia

Quintis Ltd (Subject to Deed of Company Arrangement) v Certain Underwriters at Lloyd's London Subscribing to Policy Number B0507N16FA15350 (No 2) [2021] FCA 327 File number: NSD 733 of 2020

Judgment of: LEE J

Date of judgment: 6 April 2021

Catchwords: EQUITY – rectification – policies of insurance – policies represent bundle of contracts between insured and insurer – consideration of intention of ten insurers – where common intention found between insured and some insurers – form of relief – whether relief can be calibrated to give effect to common intention found – whether relief impermissibly transforms bargain struck – consideration of rationale of rectification and limits on equity's intervention – exact form of words in which common intention framed immaterial as long as in substance parties' intention can be ascertained – consideration of contractual structure – common intention as to bilateral rights and obligations of insured and each insurer – equity available – simply bringing policies to a form consistent with common intention of parties – relief granted

Legislation: Federal Court of Australia Act 1976 (Cth) s 43

Cases cited: Bush v National Australia Bank Ltd (1992) 35 NSWLR 390 Club Cape Schanck Resort Co Ltd v Cape Country Club Pty Ltd [2001] VSCA 2; (2001) 3 VR 526 Crane v Hegeman-Harris Co Inc [1939] 1 All ER 662 Crane v Hegeman-Harris Co Inc [1939] 4 All ER 68 EMI Songs Australia Pty Ltd v Larrikin Music Publishing Pty Ltd [2011] FCAFC 92 Fowler v Fowler (1859) 4 De G & J 250 Franklins Pty Ltd v Metcash Trading Pty Ltd [2009] NSWCA 407; (2009) 76 NSWLR 603 General Reinsurance Corporation v Forsakringsaktiebolaget Fennia Patria [1983] QB 856 Kilcarne Holdings Ltd v Targetfollow (Birmingham) Ltd [2004] EWHC 2547 (Ch); [2005] 2 P&CR 8 KPMG v Network Rail Infrastructure Ltd [2007] EWCA Civ 363; [2008] P&CR 11 Leibler v Air New Zealand Ltd (No 2) [1999] 1 VR 1 Lloyds TBS Bank plc v Crowborough Properties Ltd [2013] EWCA Civ 107 Maralinga Pty Ltd v Major Enterprises Pty Ltd (1973) 128 CLR 336 Maynard v Mosely (1676) 3 Swans 651; (1976) 36 ER 1009 Mosely v Virgin (1796) 3 Ves Jun 184; (1796) 30 ER 959 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; (2015) 256 CLR 104 Muriti v Prendergast [2005] NSWSC 281 Queenfield Pty Ltd v Gordon Finance Pty Ltd [2020] VSCA 282 Quintis Ltd (Subject to Deed of Company Arrangement) v Certain Underwriters at Lloyd's London Subscribing to Policy Number B0507N16FA15350 [2021] FCA 19 Ryledar Pty Ltd v Euphoric Pty Ltd [2007] NSWCA 65; (2007) 69 NSWLR 603 Simic v New South Wales Land and Housing Corporation [2016] HCA 47; (2016) 260 CLR 85 Swainland Builders Ltd v Freehold Properties Ltd [2002] EWCA Civ 560; [2002] 2 EGLR 71 Towry Law plc v Chubb Insurance Co of Europe SA [2008] NSWSC 1352 W G Mitchell (Gleneagles) Ltd v Jemstock One Ltd [2006] EWHC 3644 (Ch)