Vero Insurance v Baycorp Advantage [2004] NSWCA 390

Reported Decision : (2005) 13 ANZ Insurance Cases 61-630 (2005) 23 ACLC 199

New South Wales Court of Appeal

CITATION : Vero Insurance v Baycorp Advantage [2004] NSWCA 390 HEARING DATE(S) : 14 October 2004 JUDGMENT DATE : 6 December 2004

JUDGMENT OF : Giles JA at 1; Tobias JA at 2; McColl JA at 89 DECISION : (1) Appeal allowed in part; (2) Set aside the answers to separate Questions 1, 2 and 3 in Order 1 made by Einstein J on 28 October 2003 and substitute therefor the following; Separate Question 1 -- No; Separate Question 2 -- Does not arise; Separate Question 3 -- Does not arise; (3) Order that each party pay its own costs of the appeal.

CATCHWORDS : INSURANCE - Directors and officers insurance policy - Claim against officers - Deed of settlement - Whether any loss to officers - Whether any legal liability under deed of settlement - Joint and several liability - "On behalf of itself and each of the other defendants in the proceedings" - INSURANCE - Loss by judgment or settlement - Reasonableness of settlement figure - INSURANCE - Defence costs indemnified - Another party besides insured benefited from defence - Whether all defence costs can be claimed Insurance Contracts Act 1984 (Cth) LEGISLATION CITED : Supreme Court Rules 1970 New South Wales Barristers' Rules New Zealand Forest Products Limited v New Zealand Insurance Co Limited (1997) 1 WLR 1237 Legal & General Insurance Australia Limited v Eather (1986) 6 NSWLR 390 at 394C CASES CITED : McCann v Switzerland Insurance Australia Limited (2000) 203 CLR 579 at 601 Idoport Pty Limited & Anor v National Australian Bank Ltd & Ors [2001] NSWSC 328 Root Quality Pty Limited v Root Control Technologies Pty Limited (2000) 177 ALR 231 The Distillers Company Bio-Chemicals (Australia) Pty Limited v Ajax Insurance Company Limited (1974) 130 CLR 1 PARTIES : Vero Insurance Limited Baycorp Advantage Limited FILE NUMBER(S) : CA 41068/03 COUNSEL : A: Mr D Davies SC / B McManus R: Mr M A Pembroke SC / T M Faulkner SOLICITORS : A: Hunt & Hunt, Sydney R: Allens Arthur Robinson, Sydney