Bailey v NSW Medical Defence Union Ltd [1995] HCA 28

High Court of Australia Brennan CJ Deane, Dawson, McHugh and Gummow JJ Bailey v NSW Medical Defence Union Ltd (S200/1994S205/1994FC 95/043) [1995] HCA 28

ORDER Order in Matter No S200 of 1994

1. Appeal allowed with costs.

2. Set aside the order of the New South Wales Court of Appeal and in lieu thereof order:

(a) Vary the order of Enderby J in No 17289 of 1980 in the Supreme Court of New South Wales by substituting the sum of $312,000 for the sum of $500,000 in pars 2 and 5 of that order.

(b) Otherwise appeal dismissed.

(c) The appellant, New South Wales Medical Defence Union Ltd, pay the respondent's costs of the appeal to the Court of Appeal.

Order in Matter No S205 of 1994

1. Appeal allowed in part.

2. Vary the judgment of the New South Wales Court of Appeal by

(a) substituting the sum of $312,000 for the sum of $562,000 in sub-par (1) of par 4 of that judgment;

(b)

inserting sub-par (1A) in par 4 to read:

Declare that payment by the defendant of the said sum of $312,000 be deemed satisfaction of the order of Enderby J in No 17289 of 1980 in the Supreme Court of New South Wales.

3. The appellant pay the respondent's costs of the appeal.

Cur adv vult

The following written judgments were delivered:—

3 November 1995 Brennan CJ, Deane and Dawson JJ.

These two appeals were heard together. The respondent in the second of them, Mr Crawford, was a patient of Dr Bailey who is deceased and whose executrix is the appellant in the first appeal. The New South Wales Medical Defence Union Ltd (the Union) is the appellant in the second appeal and the respondent in the first appeal. The Union was at all relevant times a company limited by guarantee with a membership which was, speaking generally, confined to members of the medical profession. One of its objects was to protect, support and safeguard the character and interests of legally qualified medical practitioners. Another was to indemnify its members against claims for damages "in any wise affecting the professional character or interest" of such members. Dr Bailey was a member of the Union from 1951 until his death in 1985.