David Watson v CGU Insurance Limited [2008] NSWSC 1409

New South Wales Supreme Court

CITATION : David Watson v CGU Insurance Limited [2008] NSWSC 1409 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 19 November 2008 JUDGMENT OF : McDougall J at 1

EX TEMPORE JUDGMENT DATE : 19 November 2008

DECISION : See para [62] of the judgment.

CATCHWORDS : BANKRUPTCY - termination of deed of arrangement - trustee unable after termination to exercise powers authorised by a deed of arrangement - whether upon termination of a deed of arrangement, trustee retains interest in asset comprising the trust property - who holds beneficial interest in trust property.

LEGISLATION CITED : Bankruptcy Act 1966 Bankruptcy Act 1989

David Watson (Plaintiff) PARTIES : CGU Insurance Limited (First Defendant) Australian Securities & Investment Commission (Second Defendant) One Tel Ltd (In Liquidation) (Third Defendant)

FILE NUMBER(S) : SC 50198/06

C E Adamson SC / R C Scruby / A R Lang (Plaintiff) COUNSEL : A W Street SC / P Silver / W A D Edwards (First Defendant) D L Cook (Second Defendant) B A J Coles QC / S A Kerr (Third Defendant)

Kemp Strang (Plaintiff) SOLICITORS : Colin Biggers & Paisley (First Defendant) Self represented (Second Defendant) Clayton Utz (Third Defendant)

IN THE SUPREME COURT OF NEW SOUTH WALES EQUITY DIVISION COMMERCIAL LIST

McDOUGALL J

19 November 2008 ex tempore (revised 19 November 2008)

50198/06 DAVID PATRICK WATSON AS TRUSTEE FOR JOHN HUYSHE GREAVES v CGU INSURANCE LIMITED & 2 ORS JUDGMENT 1 HIS HONOUR: The essential question for decision is whether the plaintiff (Mr Watson) can enforce a policy of insurance. That policy was underwritten by the first defendant (CGU). It afforded cover to, among others, the fourth defendant (Mr Greaves). The question arises against the following background.