MetLife Insurance Limited v Sandstrom [2021] NSWCA 123

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: MetLife Insurance Limited v Sandstrom [2021] NSWCA 123 Hearing dates: 5 November 2020, 6 November 2020 Decision date: 09 June 2021 Before: Basten JA at [1]; Macfarlan JA at [83]; Meagher JA at [212] Decision: (1) Dismiss the appeal from the judgment in the Equity Division of 9 March 2020 and the orders entered on 10 March 2020. (2) Order that the appellant pay the respondent's costs of the appeal. (3) Grant leave to Ms Sandstrom to cross-appeal from the refusal of her application for an indemnity costs order by the judgment in the Equity Division of 19 May 2020. (4) Note the consent of MetLife to the filing of the notice of cross-appeal on 14 July 2020. (5) Dismiss the cross-appeal. (6) Order Ms Sandstrom to pay MetLife's costs of the cross-appeal. Catchwords: INSURANCE – claim by ex-police officer for total and permanent disability ("TPD") payment – need to provide proof to satisfaction of insurer of TPD under policies – contractual obligations of insurer to assess claim in good faith and act fairly and reasonably – whether insurer breached contractual obligations – whether it was fair of insurer to rely on certain medical opinions as adverse to claimant – whether insurer took into account written submissions of claimant – cumulative effect demonstrated a lack of overall fairness COSTS – party/party – exceptions to general rule that costs follow the event – offers of compromise and Calderbank offers – assertion that appellant unreasonably failed to accept respondent's Calderbank offer – whether primary judge erred in refusing to make a special costs order – primary judge did not err in the exercise of his costs discretion Legislation Cited: Suitors Fund Act 1916 (NSW) Superannuation Industry (Supervision) Act 1993 (Cth), s 52 Supreme Court Act 1970 (NSW), s 101 Workplace Injury Management and Workers Compensation Act 1998 (NSW), ss 322, 326 Cases Cited: Hannover Life Re of Australasia Ltd v Jones [2017] NSWCA 233 Housman v Camuglia [2021] NSWCA 106 HTW Valuers (Central Qld) Pty Ltd v Astonland Pty Ltd (2004) 217 CLR 640; [2004] HCA 54 Jones v United Super Pty Ltd [2016] NSWSC 1551 MetLife Insurance Limited v MX [2019] NSWCA 228 MetLife Insurance Ltd v Hellessey [2018] NSWCA 307 TAL Life Ltd v Shuetrim; MetLife Insurance Ltd v Shuetrim (2016) 91 NSWLR 439; [2016] NSWCA 68 Texts Cited: Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry Commonwealth of Australia 2019, Vol 1, pp 269-270 Category: Principal judgment Parties: MetLife Insurance Limited (Appellant) Rebecca Sandstrom (Respondent) Representation: Counsel: S Lloyd SC / S J Walsh (Appellant) B Dooley SC / D E Baran (Respondent)