Drummond v Gordian Runoff Ltd [2023] NSWSC 607

Supreme Court New South Wales

Medium Neutral Citation: Drummond v Gordian Runoff Ltd [2023] NSWSC 607 Hearing dates: 3 April 2023 Date of orders: 9 June 2023 Decision date: 09 June 2023 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Summons dismissed with costs. Catchwords: INSURANCE — "delayed claim" under "last resort" home warranty insurance policy — s 103BB, Home Building Act 1989 (NSW) — insured risk, being builder's insolvency, materialises three years after end of period of cover — insured does not give notice under s 103BB(3) — whether s 54 Insurance Contracts Act 1984 (Cth) applies — s 103BB directly alters parties' rights and obligations — s 54 provides relief against "the effect of a contract of insurance" not the effect of State law CONSTITUTIONAL LAW — inconsistency of Commonwealth and State laws — whether s 103BB, Home Building Act 1989 (NSW) inconsistent with s 54, Insurance Contracts Act 1984 (Cth) — no inconsistency — s 54, Insurance Contracts Act not engaged as the "effect" is not "the effect of a contract of insurance" but of State law. Legislation Cited: Home Building Act 1989 (NSW) Home Building Amendment (Insurance) Act 2009 (NSW) Home Building Amendment Act 2011 (NSW) Home Building Regulation 2004 Insurance Contracts Act 1984 (Cth) NSW Self Insurance Corporation Amendment (Home Warranty Insurance) Act 2010 (NSW) Retail Leases Act 1994 (NSW) Cases Cited: Foy v Calliden Insurance Limited [2017] NSWDC 33 FAI General Insurance Co Limited v Australian Hospital Care Pty Ltd (2001) 204 CLR 641 Maxwell v Highway Hauliers Pty Ltd [2014] HCA 33; (2014) 252 CLR 590 Prepaid Services Pty Ltd v Atradius Credit Insurance NV [2013] NSWCA 252 Gosford City Council v GIO General Ltd [2003] NSWCA 34 SP 57504 v Building Insurers' Guarantee Corporation [2008] NSWSC 1022 Newcastle City Council v GIO General (1997) 191 CLR 85 East End Real Estate Pty Ltd v CE Health Casualty & General Insurance Limited (1991) 25 NSWLR 400 Antico v Heath Fielding Australia Pty Ltd (1997) 188 CLR 652 Prepaid Services Pty Ltd v Atradius Credit Insurance NV [2013] NSWCA 252; (2013) 302 ALR 732 CA & MEC McInally Nominees Pty Ltd v HTW Valuers (Brisbane) Pty Ltd Ltd [2001] QSC 388 Gosford City Council v GIO General Ltd [2002] NSWSC 511 Allianz Australia Insurance Limited v Delor Vue Apartments CTS 39788 [2022] HCA 38; (2022) 97 ALJR 1 Byrne v Australian Airlines Limited (1995) 185 CLR 410 Victoria v The Commonwealth (1937) 58 CLR 618 Norsworthy v SGIC [1999] SASC 496 Jemena Asset Management (3) Pty Ltd v Coinvest Ltd (2011) 244 CLR 508 Akai Pty Ltd v People's Insurance Co Ltd (1996) 188 CLR 418 Momcilovic v The Queen (2011) 245 CLR 1 NRMA Insurance Ltd v Tatt (1989) 94 FLR 339 Fruehauf Finance Corporation Pty Ltd v Zurich Australian Insurance Ltd (1993) 32 NSWLR 735 Texts Cited: Greg Pynt, Australian Insurance Law: A First Reference (1st ed, 2008, LexisNexis Butterworth) Herzfield and Prince, Interpretation (2nd ed, 2020, Thomson Reuters) New South Wales Legislative Assembly, Parliamentary Debates (Hansard), 13 October 2011 at 6186 (Second Reading Speech for Home Building Amendment Bill 2011) New South Wales Legislative Assembly, Parliamentary Debates (Hansard), 6 May 2009 at 14743 (Second Reading Speech for Home Building Amendment (Insurance) Bill 2009) Category: Principal judgment Parties: John Stephen Drummond (First Plaintiff) Colleen Anne Drummond (Second Plaintiff) Gordian Runoff Ltd (Defendant) Representation: Counsel: Mr J Hutton SC / Mr T Davie (Plaintiffs) Mr FC Corsaro SC / Mr PJ Bambagiotti (Defendant)