Murphy & Allen v SwinbankSwinbank v Cleary [1999] NSWSC 934

New South Wales Supreme Court CITATION : Murphy & Allen v SwinbankSwinbank v Cleary [1999] NSWSC 934 CURRENT JURISDICTION : Equity Division,. Commercial List FILE NUMBER(S) : 50138/98, 50007/98 HEARING DATE(S) : 11,12,13,16,17,18,19,24,25,26,30.8.99 & 1.9.99 JUDGMENT DATE : 24 September 1999

PARTIES : 50138/98 Christopher Mark Swinbank & ors v Donald James Cleary & ors 50007/98 John William Murphy & ors) v Christopher Mark Swinbank & ors JUDGMENT OF : Einstein J

COUNSEL : B.C. McDougall QC, R.W. White SC, R.J. Powell & J.A. Halley (Plaintiffs) M.A. Pembroke SC, D.L. Williams (Defendants) SOLICITORS : Baker McKenzie (Plaintiffs) Ebsworth & Ebsworth (Defendants) CATCHWORDS : Insurance - Issues arising from collapse of the Estate Mortgage Trusts - Solicitors acting in preparation of loan and security documents - Solicitors Certificates given to Trustee client omit material information - Knowledge or suspicion of wrongdoing - Side arrangement documented by Equity sharing Agreement not disclosed in Solicitors Certificates - Solicitors Certificate altered to omit material information - Professional Indemnity Insurance - Scope of indemnity - Whether insurers entitled to disclaim liability under policies - Exclusion in respect of liability brought about by dishonest act or omission - Meaning of 'dishonest' under the policies - Whether conduct of solicitors - in breach of fiduciary obligations also amounted in the circumstances proved to dishonest conduct - Exclusion for 'known claims circumstances' - Prior notification - Construction - Whether there were individual contracts of insurance or one composite contract of insurance - Whether the proper construction of the 'known claims/claims circumstances' exclusion requires that the claims circumstances must be known to each and every one of the separately or severally insured - Meaning of 'claim' - Circumstances in which separate and distinct causes of action leading to separate and distinct heads of loss or damage give rise to two claims. ACTS CITED : Evidence Act 1995 (NSW) Queensland Law Society Act Cases cited in reasons for Judgment Advance (NSW) Insurance Agencies Pty Ltd v Matthews (1989) 166 CLR 606 Boles & Ors v Esanda Finance Corporation Ltd (1989) 18 NSWLR 666 Briginshaw v Briginshaw & Anor (1938) 60 CLR 336 FAI General Insurance Co Ltd v Australian Hospital Care Pty Ltd (Unreported, Supreme Court of Queensland, Court of Appeal, 9 July 1999) Federation Insurance Ltd v Wasson & Ors (1987) 163 CLR 303 General Accident Fire and Life Assurance Corporation Ltd & Anor v Midland Bank Ltd & Ors [1940] 2 KB 388 Gilmore & Ors v AMP General Insurance Co Ltd (1996) 67 SASR 387 Haydon & Ors v Lo & Lo (a firm) & Anor [1997] 1WLR 198 Higgins v Orion Insurance Co Ltd (1985) 17 DLR (4th) 90 Homes v GRE Insurance Limited (1988) TAS R. 147 Maulder v National Insurance Company of New Zealand Ltd [1993] 2 NZLR 351 Pech v Tilgals (1994) 94 ATC 4206 Pedler v Richardson (Unreported, Supreme Court of NSW, 16 October 1997, Young J) Peters v The Queen (1998) 192 CLR 493 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589 Rankin v North Waterloo Farmers Mutual Insurance Co (1979) 25 OR (2d) 102 Royal Brunei Airlines Sdn Bhd v Tan Kok Ming [1995] 2 AC 378 P. Samuel & Co Ltd v Dumas [1924] AC 431 Schipp v Cameron (Unreported, Supreme Court of New South Wales, 9 July 1998, Einstein J) CASES CITED : Switzerland Insurance Australia Ltd & Ors v McCann & Ors (Unreported, Supreme Court of NSW, Court of Appeal, 27 August 1999) Thorman & Ors v New Hampshire Insurance Co (UK) Ltd & Anor [1988] 1 Lloyd's Rep 7 Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107 VL Credits Pty Ltd v Switzerland General Insurance Co Ltd [1990] VR 938 West Wake Price & Co v Ching [1957] 1WLR 45 Cases cited in extracts of submissions set out in Judgment Abbey National plc v Solicitors Indemnity Fund Limited (1997) PNLR 306 Chittick v Maxwell (1993) 118 ALR 728 Comino & Cooney v Manettas (1993) 7 ANZInsCas 61-162 Cowan de Groot Properties Ltd v Eagle Trust plc [1992] 4 AllER 700 Crowe v Wheeler & Reynolds [1988] 1 Qd R 40 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500 East End Real Estate Pty Ltd v CE Heath Casualty & General Insurance Ltd (1992) 7 ANZInsCas 61-151 HG & R Nominees Pty Ltd v Fava [1997] 2 VR 368 HIH Casualty & General Insurance Australia Ltd v Della Vedova [1999] FCA 456 (15 April 1999) Lombard Australia Ltd v NRMA Insurance Ltd (1968) 72 SR (NSW) 45 Lynch & Co v United States Fidelity & Guarantee Co [1971] 1 OR 28 McCann & Ors v Switzerland Insurance Australia Ltd & Ors (Unreported, Supreme Court of NSW, 26 June 1998, Hunter J) McMillan v Joseph (1987) 4 ANZInsCas 60-822 Permanent Trustee Australia Ltd v FAI General Insurance Co Ltd (1998) 153 ALR 529 R v Ghosh [1982] QB 1053 Underwriters at Lloyds & Ors v Ellis & Ors (Unreported, Supreme Court of NSW - CA, 25 February 1998) DECISION : Short Minutes to be brought in.