Manufacturers' Mutual Insurance Ltd v John H Boardman Insurance Brokers Pty Ltd [1994] HCA 16

High Court of Australia Mason C.J. Deane, Toohey, Gaudron and McHugh JJ. Manufacturers' Mutual Insurance Ltd v John H Boardman Insurance Brokers Pty Ltd [1994] HCA 16

ORDER Appeal allowed with costs. Set aside the orders of the Court of Appeal of New South Wales and in lieu thereof order:

(a) appeal to that Court allowed with costs;

(b) set aside the order of Rogers C.J. Comm.D. and in lieu thereof order that the question to be determined by his Honour be answered as follows:

Question

In the circumstances stated in paragraphs 1-8 of the Summons under the heading Nature of Dispute and by virtue of the provisions of s. 14 of the Insurance (Agents and Brokers) Act 1984 Cth, did the payment by the plaintiff to the second defendant on or about 22 May 1989 effect a renewal of policy of insurance No. 21-5003639-CPI?

Answer

No.

Cur adv vult

The following written judgments were delivered:—

1994, April 13 Mason C.J., Toohey and McHugh JJ.

This is an appeal from a decision of the New South Wales Court of Appeal (Mahoney and Cripps JJ.A., Clarke J.A. dissenting) dismissing an appeal from a decision of Rogers C.J. Comm. D. in favour of the second respondent ("the Company") which was the plaintiff in the action. The appeal to this Court was initially brought on the ground that the decision of the Court of Appeal should be set aside for procedural unfairness, as the majority of that Court decided the case on the basis of an issue not argued before the Court of Appeal. This was accepted by the first respondent ("the Broker"), and it was agreed that the decision of the Court of Appeal should prima facie be set aside on that ground.

The appeal then proceeded before this Court on the basis that this Court would consider two issues of law raised by the case: first, the operation of s. 14(2) of the Insurance (Agents and Brokers) Act 1984 Cth ("the Act"); and second, whether, in the circumstances of this case, acceptance of an offer of renewal of an insurance contract could be effected by the insured paying the insurance premium to an insurance broker without any notification to the insurer.