Drummond v Gordian Runoff Limited ACN 052 179 647 [2024] NSWCA 239

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Drummond v Gordian Runoff Limited ACN 052 179 647 [2024] NSWCA 239 Hearing dates: 28 March 2024 Date of orders: 04 October 2024 Decision date: 04 October 2024 Before: White JA at [1]; Mitchelmore JA at [59]; Stern JA at [60]. Decision: (1) The appeal is dismissed. (2) The appellants are to pay the respondent's costs of the appeal. Catchwords: BUILDING AND CONSTRUCTION – Home Building Act 1989 (NSW) – insurance – "last resort" home warranty insurance policy – where insurer denied liability under policy on basis insureds failed to satisfy requirements of s 103BB(3)(a) – whether s 103BB was itself incorporated as a term of policy – whether s 103BB alters the effect of the policy so as to engage s 54 of the Insurance Contracts Act 1984 (Cth) – whether operation of s 54 of Insurance Contracts Act 1984 (Cth) was attracted where a refusal to pay is premised upon effect of s 103BB(3) and not upon the policy CONSTITUTIONAL LAW – Commonwealth and State relations – inconsistency of laws – whether Home Building Act 1989 (NSW), s 103BB inconsistent with Insurance Contracts Act 1984 (Cth) COSTS – party/party – bases of quantification – indemnity basis – primary judge ordered costs on indemnity basis – where proceedings ongoing for some time when offer of compromise made – offer had necessary element of compromise – no error Legislation Cited: Building Services Corporation Legislation Amendment Act 1996 (NSW) Home Building Act 1989 (NSW), ss 18B, 90, 92, 94, 96, 99, 103, 103B, 103BA, 103BB, 103BC, Sch 4, cll 106, 115 Home Building Amendment (Insurance) Act 2002 (NSW) Home Building Amendment (Insurance) Act 2009 (NSW) Home Building Amendment (Warranties and Insurance Act) 2010 (NSW) Home Building Amendment Act 2011 (NSW) Insurance Contracts Act 1984 (Cth), ss 40, 54, 57 NSW Self Insurance Corporation Amendment (Home Warranty Insurance) Act 2010 (NSW) The Commonwealth Constitution, s 109 Home Building Regulation 2004 (NSW), cll 63, 63A Uniform Civil Procedure Rules 2005 (NSW), r 20.26 Cases Cited: CA & MEC McInally Nominees Pty Ltd v HTW Valuers (Brisbane) Pty Ltd Ltd [2001] QSC 388 East End Real Estate Pty Ltd v C E Heath Casualty & General Insurance Limited (1991) 25 NSWLR 400 FAI General Insurance Company Limited v Australian Hospital Care Pty Ltd (2001) 204 CLR 641; [2001] HCA 38 Foy v Calliden Insurance Limited [2017] NSWDC 33 Greylag Goose Leasing 1410 Designated Activity Company v PT Garuda Indonesia Ltd (2023) 111 NSWLR 550; [2023] NSWCA 134 House v The King (1936) 55 CLR 499; [1936] HCA 40 Jemena Asset Management (3) Pty Ltd v Coinvest Ltd (2011) 244 CLR 508; [2011] HCA 33 Maxwell v Highway Hauliers Pty Ltd (2014) 252 CLR 590; [2014] HCA 33 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579; [2000] HCA 65 New South Wales Lotteries Corporation Pty Ltd v Kuzmanovski (2011) 195 FCR 234; [2011] FCAFC 106 NRMA Insurance Ltd v Tatt (1989) 94 FLR 339 Sageinvest AG v Western Metals Copper Ltd [2003] NSWSC 490 SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362; [2017] HCA 34 Owners Strata Plan 57504 v Building Insurers' Guarantee Corporation [2008] NSWSC 1022 Warner Bros Feature Productions Pty Ltd v Kennedy Miller Mitchell Films Pty Ltd [2018] NSWCA 81 Godecke v Kirwan (1973) 129 CLR 629;[1973] HCA 38 Ye v Chen (No 2) [2023] NSWCA 9 Texts Cited: Nil. Category: Principal judgment Parties: John Stephen Drummond (First appellant) Colleen Anne Drummond (Second appellant) Gordian Runoff Limited ACN 052 179 647 (Respondent) Representation: Counsel: