Allianz Australia Insurance Limited & Ors v General Cologne Re Australia Limited [2003] NSWSC 144

Reported Decision : (2003) 12 ANZ Insurance Cases 61-564

New South Wales Supreme Court

CITATION : Allianz Australia Insurance Limited & Ors v General Cologne Re Australia Limited [2003] NSWSC 144 HEARING DATE(S) : 17-18 February 2003 JUDGMENT DATE : 13 March 2003

JURISDICTION: Equity Division Commercial List JUDGMENT OF : McClellan J DECISION : Summons dismissed

CATCHWORDS : INSURANCE - REINSURANCE - Reinsurance policy relating to professional indemnity insurance - method of calculating aggregate - policy to be construed in light of commercial objective of reinsured - whether "special condition" was incomplete description of interest covered - whether reference "as per original wording" in "Interest Covered" section of certificate meant that contract of reinsurance to be governed by same terms and conditions as original insurance policy - ASSIGNMENT - CONTRACT - Assignment - whether purported assignments of contract of reinsurance valid - whether potential benefit under contract of reinsurance is a "mere expectancy" and thus incapable of assignment - whether novation required for assignment of contract of reinsurance - whether possible to assign contractual liability - whether possible to assign contractual liability for purpose of s 36 Insurance Act 1973 (Cth) LEGISLATION CITED : Insurance Act 1973 (Cth), s 36, 39(8),(9) Conveyancing Act 1919 (NSW) s 12 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Brooks v NSW Grains Board & Ors (unreported) NSWSC 1049 CASES CITED : Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Norman v Federal Commissioner of Taxation (1963) 109 CLR 9 Peters v General Accident and Life Insurance Co (1937) 4 All ER 628 Tolhurst v Associated Portland Cement Manufacturers (1900) Ltd [1902] 2 KB 660 Allianz Australia Insurance Limited (1P) PARTIES : Allianz Australia (Run-Off) Limited (formerly Switzerland Insurance Australia Limited) (2P) Switzerland and General Insurance Company Limited (3P) General Cologne Re Australia Limited (Def) FILE NUMBER(S) : SC 50128/01 COUNSEL : J E Marshall SC/P Sibtain (Pltf) C Gee QC/E G Romaniuk (Def) SOLICITORS : Minter Ellison (Pltf) Colin Biggers & Paisley, Lawyers (Def)