Darshn v Avant Insurance Limited [2021] FCA 706

FEDERAL COURT OF AUSTRALIA

Darshn v Avant Insurance Limited [2021] FCA 706 File number: NSD 1390 of 2020

Judgment of: MOSHINSKY J

Date of judgment: 25 June 2021

Catchwords: INSURANCE – professional indemnity insurance – claims made and notified policy – where insured doctor was joined as a defendant to a class action after the policy period in contract of insurance – where insurer refused the doctor's claim for indemnity on the ground that no "claim" as defined in the policy had been made during the period of cover – whether a "claim" was made during the policy period – whether the insured gave notice in writing of facts that might give rise to a claim within the meaning of s 40(3) of the Insurance Contracts Act 1984 (Cth) – whether the insurer acted in breach of its duty of utmost good faith

Legislation: Acts Interpretation Act 1901 (Cth), s 15AA Federal Court of Australia Act 1976 (Cth) Insurance Contracts Act 1984 (Cth), ss 12, 13, 14, 40, 54 Civil Procedure Act 2005 (NSW), ss 157, 158, 161, 168-170

Cases cited: AIG Europe Ltd v Woodman [2017] Lloyd's Rep IR 209 Antico v CE Heath Casualty Insurance Ltd (1995) 8 ANZ Ins Cases ¶61-268 Antico v CE Heath Casualty & General Insurance Ltd (1996) 38 NSWLR 681 Antico v Heath Fielding Australia Pty Ltd (1997) 188 CLR 652 Australian Securities and Investments Commission v TAL Life Ltd (No 2) (2021) 389 ALR 128 Bank of Queensland Ltd v AIG Australia Ltd [2019] NSWCA 190 Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) (2008) 39 WAR 1 Certain Lloyd's Underwriters v Cross (2012) 248 CLR 378 CGU Insurance Ltd v AMP Financial Planning Pty Ltd (2007) 235 CLR 1 Delor Vue Apartments CTS 39788 v Allianz Australia Insurance Ltd (No 2) (2020) 379 ALR 117 Dillon v RBS Group (Australia) Pty Ltd (2017) 252 FCR 150 Dyczynski v Gibson (2020) 381 ALR 1 East End Real Estate Pty Ltd v CE Heath Casualty & General Insurance Ltd (1991) 25 NSWLR 400 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640 Esined No 9 Pty Limited v Moylan Retirement Solutions Pty Ltd (No 2) (2020) 353 FLR 1 Ethicon Sàrl v Gill (2018) 264 FCR 394 FAI General Insurance Co Ltd v Australian Hospital Care Pty Ltd (2001) 204 CLR 641 Federal Commissioner of Taxation v Consolidated Media Holdings Ltd (2012) 250 CLR 503 Gosford City Council v GIO General Ltd (2003) 56 NSWLR 542 Guild Insurance Ltd v Hepburn (2015) 18 ANZ Insurance Cases ¶62-046; [2014] NSWCA 400 Icon Co (NSW) Pty Ltd v Liberty Mutual Insurance Company Australian Branch trading as Liberty Specialty Markets [2020] FCA 1493 Lloyds TSB General Insurance Holdings Ltd v Lloyds Bank Group Insurance Co Ltd [2003] 4 All ER 43 Maxwell v Highway Hauliers Pty Ltd (2014) 252 CLR 590 McCarthy v St Paul International Insurance Co Ltd (2007) 157 FCR 402 Morgan, in the matter of Brighton Hall Securities Pty Ltd (in liq) [2013] FCA 970 Newcastle City Council v GIO General Ltd (1997) 191 CLR 85 Prepaid Services Pty Ltd v Atradius Credit Insurance NV (2013) 302 ALR 732 Quintis Ltd (Subject to Deed of Company Arrangement) v Certain Underwriters at Lloyd's London Subscribing to Policy Number B0507N16FA15350 [2021] FCA 19 Rickhuss v The Cosmetic Institute Pty Ltd [2018] NSWSC 1848 Seltsam Pty Ltd v McGuiness (2000) 49 NSWLR 262 SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362 Westpac Banking Corporation v Bell Group (in liq) (No 3) (2012) 44 WAR 1