MMI GENERAL INSURANCE LIMITED v BAKTOO & ANOR [2000] NSWCA 70

[2000] 48 NSWLR 605 Reported Decision : [2000] 155 FLR 230 [2000] 11 ANZ Ins Cas 61-466

New South Wales Court of Appeal

CITATION : MMI GENERAL INSURANCE LIMITED v BAKTOO & ANOR [2000] NSWCA 70 FILE NUMBER(S) : CA 40643/98 HEARING DATE(S) : 21 March 2000 JUDGMENT DATE : 11 April 2000

PARTIES : MMI General Insurance Limited - Appellant Ibraham and Karen Baktoo - Respondents JUDGMENT OF : Mason P at 1; Sheller JA at 2; Beazley JA at 27

LOWER COURT JURISDICTION : District Court LOWER COURT 3750/96 FILE NUMBER(S) : LOWER COURT Patten DCJ JUDICIAL OFFICER :

C G Gee QC/J S Drummond - Appellant COUNSEL : Submitting appearance - First Respondent A M Gruzman - Second Respondent

SOLICITORS : Hartman & Associates - Appellant Keddies - Respondents CATCHWORDS : INSURANCE - Co-insured parties - Respective rights and interests - Joint or composite policy and interests - Where insurance policy covering joint interest in partnership property - Fraud of one of the insured (by setting fire to property) - Insurer's liability - Whether indemnity of innocent co-insurer - CONTRACTS - Parties - Joint or several contractors - Whether promise made to two persons jointly or severally - PARTNERSHIP - Interests in partnership property - Insurance of partnership property - ND LEGISLATION CITED : Insurance Contracts Act 1984 (Cth) P Samuel and Company Ltd v Dumas [1924] AC 431 Lombard Australia Ltd v NRMA Insurance Ltd (1968) 72 SR (NSW) 45 Higgins v Orion Insurance Co Ltd (1985) 17 DLR (4th) 90 Holmes v GRE Insurance Ltd (1989) 5 ANZ Ins Cas 60-894 Advance (NSW) Insurance Agencies Pty Ltd v Matthews (1989) 166 CLR 606 CASES CITED: Canny Gabriel Castle Jackson Advertising Pty Ltd v Volume Sales (Finance) Pty Ltd (1974) 131 CLR 321 General Accident Fire and Life Assurance Corporation Ltd v Midland Bank Ltd [1940] 2 KB 388 New Hampshire Insurance Co v MGN Ltd (1997) LRLR 24 Commonwealth Construction Co Ltd v Imperial Oil Ltd (1976) 69 DLR (3d) 558 Gilmore v AMP General Insurance Co Ltd (1997) 9 ANZ Ins Cas 61-372 Kelly v The National Insurance Company of New Zealand Ltd (1995) 8 ANZ Ins Cas 61-239 CRA and MD Gate v Sun Alliance Insurance Ltd (1995) 8 ANZ Ins Cas 61-251 DECISION : 1. Appeal allowed; 2. Set aside the verdict and judgment for the respondent, Karen Baktoo, of 30 July 1998; 3. Order that judgment be entered in favour of the appellant, MMI General Insurance Limited, against the respondent Karen Baktoo; 4. Order that Karen Baktoo pay the costs of the MMI General Insurance Limited of the proceedings in the District Court and of this appeal but have a certificate under the Suitors' Fund Act 1951, if so qualified.