Dariusz Koper v Zurich Insurance PLC [2021] NSWSC 1587

Supreme Court New South Wales

Medium Neutral Citation: Dariusz Koper v Zurich Insurance PLC [2021] NSWSC 1587 Hearing dates: 30, 31 August and 12 November 2021 Date of orders: 8 December 2021 Decision date: 08 December 2021 Jurisdiction: Equity Before: Rein J Decision: Leave granted pursuant to s 5 of the Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW) Catchwords: INSURANCE — Application for leave pursuant to s 5 of the Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW) ("Claims Act") — Parties agreed that the requirements for leave under s 5 of the Claims Act were met, subject to the issue of the territorial scope of the legislation and the Court's exercise of its residual discretion to refuse leave — Whether the Plaintiff's application for leave itself was all that was required to enliven the jurisdictional scope of the Claims Act or whether the Plaintiff was required to establish that he could have brought proceedings in a New South Wales court against the insured (a New Zealand company) in respect of tortious conduct in New Zealand with damage suffered in New Zealand and whether, in fact, the Plaintiff could have done so — Consideration of the Court of Appeal's decision in Chubb Insurance Company of Australia Limited v Moore [2013] NSWCA 212, including as to its applicability to the Claims Act and in ascertaining the "hinge" of the territorial scope of the Claims Act — Further, whether, assuming the requirement for leave was otherwise established, the Court should, in its residual discretion, refuse leave CONSTITUTIONAL LAW — Commonwealth Constitution — Legislative power — Service and execution of process — Challenge to the validity of ss 9 and 10 of the Trans-Taman Proceedings Act 2010 (Cth) ("TTPA"), upon which the Plaintiff sought to rely — Consideration of whether the Commonwealth Government, by the TTPA, sought to confer jurisdiction upon State courts in a manner inconsistent with Chapter III of the Constitution — Consideration of the High Court's decision in Flaherty v Girgis (1987) 162 CLR 574 and whether the contentions of the Defendants were inconsistent with the reasoning in that case — Held: ss 9 and 10 of the TTPA are not inconsistent with Chapter III of the Constitution INSURANCE — Application for leave pursuant to s 5 of the Claims Act — Consideration of the Court's residual discretion to refuse leave — Whether the Court should refuse leave on the basis that by granting leave, the Court may be interfering with the insolvency regime of New Zealand — Held: the alleged inconsistency is hypothetical only and various further factors considered as not supporting the refusal of leave — Leave granted pursuant to s 5 of the Claims Act Legislation Cited: Acts Interpretation Act 1901 (Cth) Australian Constitution Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW) Commonwealth Public Service Act 1922 (Cth) Companies Act 1993 (NZ) Corporations Act 2001 (Cth) Criminal Procedure Act 2004 (WA) Extradition Act 1988 (Cth) Foreign Evidence Act 1994 (Cth) Interpretation Act 1987 (NSW) Inter-State Destitute Persons Relief Act 1910 (SA) Judiciary Act 1903 (Cth) Law Reform Act 1936 (NZ) Law Reform (Miscellaneous Provisions) Act 1946 (NSW) Misuse of Drugs Act 1981 (WA) Service and Execution of Process Act 1901 (Cth) Service and Execution of Process Act 1992 (Cth) Supreme Court Rules 1970 (NSW) Trans-Tasman Proceedings Act 2010 (Cth) Trans-Tasman Proceedings Bill 2009 (Cth) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Antico v Heath Fielding Australia Pty Ltd (1997) 188 CLR 652 ASIC v Edensor Nominees Pty Ltd (2001) 204 CLR 559 Backhouse v Moderana (1904) 1 CLR 676 Barcelo v Electrolytic Zinc Co of Australasia Limited (1932) 48 CLR 391 Barker v Palmer (1881) 8 QBD 9 Baxter v Commissioners of Taxation (NSW); Flint v Webb (1907) 4 CLR 1087 Body Corporate 326421 v Auckland Council [2013] NZHC 753 Body Corporate 346799 v KNZ International Co Ltd [2017] NZHC 511 Burns v Corbett (2018) 265 CLR 304 Cambridge Credit Corporation Ltd v Lissenden (1987) 8 NSWLR 411 CGU Insurance Ltd v Blakeley (2016) 259 CLR 339 Chubb Insurance Company of Australia Limited v Moore [2013] NSWCA 212 Crosby v Kelly (2012) 203 FCR 451 Dixon v Royal Insurance Australia Ltd (1991) 105 ACTR 1 Doyle's Farm Produce Pty Ltd v Murray Darling Basin Authority (No 2) [2021] NSWCA 246 DSHE Holdings Ltd (recs and mgrs apptd) (in liq) v Abboud [2017] NSWSC 579 Ex parte Bucknell (1867) 6 SCR 96 Federal Capital Commission v Laristan Building and Investment Co Pty Ltd (1929) 42 CLR 582 Felton v Mulligan (1971) 124 CLR 367 Fencott v Muller (1983) 152 CLR 570 Flaherty v Girgis (1987) 162 CLR 574 Fleming v Marshall [2011] NSWCA 86 Garsec v His Majesty the Sultan of Brunei [2008] NSWCA 211 Gosper v Sawyer (1985) 160 CLR 548 Habib v Commonwealth (2010) 183 FCR 62 Insight Vacations v Young (2011) 243 CLR 149 John Russell & Co Ltd v Cayzer, Irvine & Co Ltd [1916] 2 AC 298 Laurie v Carroll (1958) 98 CLR 310 Le Mesurier v Connor (1929) 42 CLR 481 Lipohar v The Queen (1999) 200 CLR 485 Ludgater Holdings Ltd v Gerling Australia Insurance Co Pty Ltd [2010] 3 NZLR 713 Luke v Mayoh (1921) 29 CLR 435 McCullagh v Underwriters Severally [2015] NZHC 1384 McDonald v Mabee (1917) 243 US 90 McNamara (McGrath) v Consumer Trader & Tenancy Tribunal (2005) 221 CLR 646 Meyer Heine Pty Ltd v China Navigation Co Ltd (1966) 115 CLR 10 Moorgate Tobacco Co Ltd v Philip Morris Ltd (1980) 145 CLR 457 Murphy, McCarthy & Associates Pty Limited v Zurich Australian Insurance Limited [2018] NSWSC 627 Neilson v Overseas Projects Corp of Victoria (2005) 223 CLR 331 New South Wales v Commonwealth (1975) 135 CLR 337 Noyce v Parnell Property Investments Ltd [2015] NZHC 2037 Obeid v R (2015) 91 NSWLR 226 Oceanic Sun Line Special Shipping Co Inc v Fay (1988) 165 CLR 197 Peacock v Newtown, Marrickville and General Co-operative Building Society (No 4) Ltd (1943) 67 CLR 25 Petterson v McConnell Dowell Constructors Ltd [2018] NZHC 2379 R v Hughes (2000) 202 CLR 535 R v Kirby; Ex parte Boilermakers' Society of Australia (1956) 94 CLR 254 R v Reid [1999] VSCA 98 R v Schildkamp [1969] 3 All ER 1640 Re Macks; Ex parte Saint (2000) 204 CLR 158 Re Wakim; Ex parte McNally (1999) 198 CLR 511 Regie National des Usines Renault SA v Zhang (2002) 210 CLR 491 Renton v Renton (1918) 25 CLR 291 Rizeq v Western Australia (2017) 262 CLR 1 Robinson v Vogelsang (No 1) [2015] NSWSC 1670 Ruhani v Director of Police (2005) 222 CLR 489 Tana v Baxter (1986) 160 CLR 572 The Commonwealth v Dalton (1924) 33 CLR 452 The Grain Pool of Western Australia v The Commonwealth (2000) 202 CLR 479 The Ombudsman v Moroney [1983] 1 NSWLR 317 Truong v The Queen (2004) 223 CLR 122 Victoria v Commonwealth (1996) 187 CLR 416 Voth v Manildra Flour Mills Pty Ltd (1990) 171 CLR 538 Wayland v Bird [2017] NSWCA 26 Webster v Brewer [2020] FCA 622 Westpac Banking Corporation v ASIC (2009) 181 FCR 379 XYZ v The Commonwealth (2006) 227 CLR 532 Texts Cited: D C Pearce, Statutory Interpretation in Australia (7th ed, 2011, LexisNexis) James Stellios, The Federal Judicature – Chapter III of the Constitution (2nd ed, 2020, LexisNexis) Leslie Zines, The High Court and The Constitution (5th ed, 2008, The Federation Press) Mark Leeming, Authority to Decide – The Law of Jurisdiction in Australia (2nd ed, 2020, The Federation Press) N Rein, "Choosing your life raft: A review of Law Reform (Miscellaneous Provisions) Act 1946 (NSW) s 6 and its analogues" (2007) 81 ALJ 180 North (ed), Cheshire Private International Law (9th ed, 1974, Butterworth) R D Giles, "Reflections on Section 6" (1996) 7 Insurance Law Journal 152 Second Reading Speech, Trans-Tasman Proceedings Bill 2009 (Hansard, House of Representatives, 25 November 2009, 12769-71) Category: Principal judgment Parties: Dariusz Koper (Plaintiff) Zurich Insurance PLC (First Defendant) Aspen Insurance UK Limited (Second Defendant) Representation: Counsel: Mr P Braham SC with Mr B O'Connor and Ms M Caristo (Plaintiff)