Lumley General Insurance Ltd v Oceanfast Marine Pty Ltd & Ors [2001] NSWCA 479

New South Wales Court of Appeal

CITATION : Lumley General Insurance Ltd v Oceanfast Marine Pty Ltd & Ors [2001] NSWCA 479 FILE NUMBER(S) : CA 40009/01 HEARING DATE(S) : 7 September 2001 JUDGMENT DATE : 20 December 2001

Lumley General Insurance Limited - Appellant Oceanfast Marine Pty Limited - First Respondent Oceanfast Limited - Second Respondent PARTIES : Ross Stuart Norgard - Third Respondent Bryan Kevin Hughes - Fourth Respondent Adsteam Marine Charters - Fifth Respondent Stirling Marine Constructions Pty Limited - Sixth Respondent Howard Smith Industries Pty Limited - Seventh Respondent JUDGMENT OF : Priestley JA at 1; Beazley JA at 11; Giles JA at 96

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT 4692/99 FILE NUMBER(S) : LOWER COURT Austin J JUDICIAL OFFICER :

Appellant: T F Bathurst QC/M A Jones COUNSEL : 1-4 Respondents: J E Thomson 5-7 Respondents: G C Lindsay SC Appellant: Baker McKenzie SOLICITORS : 1-4 Respondents: Blake Dawson Waldron 5-7 Respondents: Freehill Hollingdale & Page CATCHWORDS : Insolvency - rule against double proofs - money paid under bank bonds - whether money paid reduced debt of primary creditor. Moule v Garrett (1872) LR 7 Ex 101 Barclays Bank v T.O.S.G Trust Fund Limited [1984] 1 AC 626 Ellis v Emmanuel (1876) 1 Ex D 157 Westpac Banking Corporation v Gollin [1988] VR 397 Brittain v Lloyd (1845) 14 M & W 762 Re a Debtor [1937] 1 Ch 163 Thornton v McEwan (1862) 1 H& M 525 Goodwin v Gray (1874) 22 WR 312 Wood Hall v The Pipeline Authority (1979) 141 CLR 443 Bachmann Pty Limited v BHP Power NZ Ltd [1999] 1 VR 420 Kvaerner John Brown Ltd v Midland Bank plc [1988] CLC 446 CASES CITED: Re Oriental Commercial Bank, Ex parte European Bank (1871) LR 7 Ch App 99 Western Australia v Bond Corporation Holdings Ltd (No 2) (1992) 37 FCR 150 Ex parte National Provincial Bank of England, In re Rees (1881) 17 Ch Div 98 Farrow Finance Co Ltd v ANZ Executors & Trustee Co Ltd (1997) 15 ACLC 529 Day and Dent Constructions Pty Ltd (in liquidation) v North Australian Properties Pty Ltd (1982) 150 CLR 85 Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (in liquidation) (1978) 141 CLR 335 Comdell Commodities Ltd v Siporese Trade SA (1997) 1 Ll R 424 Cargill International SA v Bangladesh Sugar and Food Industries Corporation (1996) 4 All ER 563 Thornton v M'Kewan (1862) 1 H & M 525 Goodwin v Gray (1874) 22 WR 312 Karacominakis v Big Country Developments Pty Ltd (2000) NSWCA 313 re Sass, ex parte National Provincial Bank of England Ltd (1896) 2 QB 12 re Fenton, ex parte Fenton Textile Association Ltd (1931) 1 CH 85 DECISION : Appeal allowed; See para 176