CGU Insurance Ltd v Watson (as trustee of the deed of arrangement in respect of Greaves) [2007] NSWCA 301

Appeal Outcome: Special leave refused with costs by the High Court - 16 May 2008

New South Wales Court of Appeal

CITATION: CGU Insurance Ltd v Watson (as trustee of the deed of arrangement in respect of Greaves) [2007] NSWCA 301

HEARING DATE(S): 18 September 2007

JUDGMENT DATE: 31 October 2007

JUDGMENT OF: Spigelman CJ at 1; Giles JA at 2; Basten JA at 82

DECISION: (1) Grant leave to appeal; (2) Direct the appellant's notice of appeal and the respondent's notice of contention be filed within 7 days; (3) Dismiss the appeal with costs.

CATCHWORDS: Practice and procedure - stay of proceedings if costs of prior proceedings unpaid - whether proceedings on the same or substantially similar cause of action - meaning of cause of action - whether claim to declaration a cause of action - nature of claims under contract of insurance - essential facts on which claimant relied in the two proceedings were different - not the same or substantially similar cause of action - no stay.

LEGISLATION CITED: Bankruptcy Act 1966 (C'th), Pt X

Ainsworth v Criminal Justice Commission (1992) 175 CLR 564; Bowen v Hickey (1958) 78 WN 820; Bowes v Chaleyer (1923) 32 CLR 159; British American Tobacco Australia Ltd v Eagle Star Reinsurance Co Ltd [2006] NSWCA 156; Burghes v Attorney-General (1911) 2 Ch 139; Carter v Egg and Egg Pulp Marketing Board (Vic) (1942) 66 CLR 557; Conquer v Boot (1928) 2 KB 336; Dunbee Ltd v Gilman & Co (Australia) Pty Ltd (1969) 89 WN (Pt 1) 259; Dyson v Attorney-General (1912) 1 Ch 158; Firma C-Trade SA v Newcastle Protection and Indemnity Association (1991) 2 AC 1; Gouriet v Union of Post Office Workers (1978) AC 435; Guaranty Trust Co of New York v Hannay & Co (1915) 2 KB 356; Haines v Australian Broadcasting Corporation (1995) 43 NSWLR 404; Idoport Pty Ltd v National Australia Bank Ltd [2000] NSWCA 202; Johnston v The Salvage Association (1887) 29 QBD 458; Kone Elevators Pty Ltd v Popa [2006] VSCA 26; CASES CITED: Letang v Cooper (1965) 1 QB 232; Macquarie Bank Ltd v National Mutual Life Association of Australia Ltd (1996) 40 NSWLR 543; Martin v Earl Beauchamp (1883) 25 Ch D 12; McCabe v Bank of Ireland (1889) 14 App Cas 413; Onerati v Phillips Constructions Pty Ltd (in liquidation) (1989) 16 NSWLR 730; Peter Turnbull & Co Pty Ltd v Mundus Trading (A'Asia) Pty Ltd (1954) 90 CLR 235; Penrith City Council v Government Insurance Office of New South Wales (1991) 24 NSWLR 564; Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 598; Reichel v McGrath (1889) 14 App Cas 665; Republic of India v India Steamship Co (1993) AC 410; Rice v Henley (1915) 32 WN 54; Rippon v Chilcotin Pty Ltd (2001) 53 NSWLR 198; Sankey v Whitlam (1978) 142 CLR 1; Sinclair v British Telecommunications plc (2001) 1 WLR 38; State Bank of New South Wales Ltd v Stenhouse Ltd (1997) Aust Torts Rep 81-423; Stingel v Clark (2006) 80 ALJR 1339; West Wake Price & Co v Ching (1956) 3 All ER 821; Williams v Milotin (1957) 97 CLR 465.