Cantone v Insurance Australia Limited [2022] FCA 1009

Federal Court of Australia

Cantone v Insurance Australia Limited [2022] FCA 1009 File number: SAD 46 of 2021

Judgment of: ALLSOP CJ

Date of judgment: 31 August 2022

Catchwords: INSURANCE – construction of three successive professional indemnity insurance policies – adverse cost orders made against deed administrators of deed of company arrangement (DOCA) due to conduct in defending proceedings instituted by a creditor to set aside DOCA – costs orders required payment by deed administrators of percentage of costs of applicant creditor without recourse to the assets of company subject to the DOCA – whether applicant creditor's application for cost orders a "Claim" for "Civil Liability" within the meaning of the policies – if yes, when was the "Claim" first made and do "Known Circumstances" provisions arise

Legislation: Corporations Act 2001 (Cth)

Cases cited: Adelaide Brighton Cement Limited, in the matter of Concrete Supply Pty Ltd v Concrete Supply Pty Ltd (Subject to Deed of Company Arrangement) (No 4) [2019] FCA 1846 Adelaide Brighton Cement Limited, in the matter of Concrete Supply Pty Ltd v Concrete Supply Pty Ltd (Subject to Deed of Company Arrangement) (No 6) [2020] FCA 928 Cresvale Far East v Cresvale Securities (No 2) [2001] NSWSC 791; 39 ACSR 622 Kirwan v Cresvale Far East Ltd (in liq) [2002] NSWCA 395; 44 ACSR 21 Latoudis v Casey [1990] HCA 59; 170 CLR 534 Liberty Mutual Insurance Company Australia Branch trading as Liberty Speciality Markets v Icon Co (NSW) Pty Ltd [2021] FCAFC 126; 154 ASCR 126 McCarthy v St Paul International Insurance Co Ltd [2007] FCAFC 28; 157 FCR 402 MOS Beverages Pty Ltd v Insurance Australia Ltd t/as CGU Insurance [2020] FCA 1716 Oshlack v Richmond River Council [1998] HCA 11; 193 CLR 72 Re Beddoe; Downes v Cottam [1893] 1 Ch 574