TOWER AUSTRALIA LTD v FARKAS [2005] NSWCA 363

Reported Decision : 64 NSWLR 253 (2006) 14 ANZ Insurance Cases 61-679

New South Wales Court of Appeal

CITATION: TOWER AUSTRALIA LTD v FARKAS [2005] NSWCA 363

HEARING DATE(S): 9 September 2005

JUDGMENT DATE: 28 October 2005

JUDGMENT OF: Mason P at 1; Beazley JA at 62; Tobias JA at 63

DECISION: Appeal dismissed with costs

CATCHWORDS: INSURANCE - death benefit - critical illness benefit - illness or condition which is highly likely to result in death within twelve months - malignant non-Hodgkin's lymphoma - whether the Policy responded - absence of words "with treatment" in the Policy - construction of Policy - whether regard to be had to available treatment - likely response to diagnosis - meaning of highly likely - mathematical probabilities - balance of probabilities - whether relevant that insured in fact survived beyond twelve months. (D)

The Hon Mr Justice D H Hodgson, "The Scales of Justice: Probability and Proof in Legal Fact-finding" (1995) 69 ALJ 731 Cream Holdings Ltd v Banerjee [2003] Ch 650 Farkas v Northcity Financial Services Pty Ltd & 3 Ors [2004] NSWSC 206 H T W Valuers (Central Queensland) Pty Ltd v Astonland Pty Ltd [2004] HCA 54, 79 ALJR 190 at [39] Makita (Aust) Pty Ltd v Sprowles (2001) 52 NSWLR 705 CASES CITED: Malec v J C Hutton Pty Ltd (1990) 169 CLR 638 McArthur v Mercantile Mutual Life Insurance Co Ltd (2001) 163 FLR 236, [2001] QCA 317 Minister Administering the Crown Lands Act v Deerubbin Local Aboriginal Land Council (No 2) (2002) 50 NSWLR 655 at 674[52] Tillmans Butcheries Pty Ltd v Australasian Meat Employees Union (1980) 42 FLR 331 Willis v The Commonwealth (1946) 73 CLR 105 at 116