Zurich Australian Insurance Ltd v GIO General Ltd [2011] NSWCA 47

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Zurich Australian Insurance Ltd v GIO General Ltd [2011] NSWCA 47 Hearing dates: 24 November 2010 Decision date: 10 March 2011 Before: Allsop P, Giles JA, Young JA Decision: 1. Appeal allowed. 2. Set aside the orders made on 19 February 2010 that the proceedings be dismissed and Zurich pay GIO's costs. 3. Declare that Zurich is entitled to contribution from GIO for half the amount of $429,360 representing indemnity to Caringbah in respect of injury to Mr McLellan. 4. Order that GIO pay Zurich's costs of the proceedings in the Equity Division and on appeal. 5. Liberty to apply within 14 days for any further relief conformable with these reasons. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: INSURANCE - Double insurance principle - two different insureds entitled to indemnity from two different insurers with respect to separate liabilities for the same injury - contribution between insurers - extended contribution principle in AMP Workers Compensation Services (NSW) Ltd v QBE Insurance Ltd [2001] NSWCA 267; (2001) 53 NSWLR 35 - uncrystallised liability sufficient for purposes of double insurance - second insurer concurred in first insurer indemnifying its insured in the injury - proof of liability of second insurer's insured - first insurer's indemnity discharged that liability - second insurer required to share burden of indemnity - sufficient to declare entitlement to contribution Legislation Cited: Motor Accidents Compensation Act 1999 Workers Compensation Act 1987 (NSW) Cases Cited: Albion Insurance Co Ltd v Government Insurance Office of New South Wales (1969) 121 CLR 342; Allianz Australia Workers Compensation (NSW) Ltd v NRMA Insurance Ltd [2007] ACTSC 2; AMP Workers Compensation Services (NSW) Ltd v QBE Insurance Ltd [2001] NSWCA 267; (2001) 53 NSWLR 35; Bovis Construction Ltd v Commercial Union Assurance Co Plc (2001) 1 Ll R 416; Burke v LFOT Pty Ltd [2002] HCA 17; (2002) 209 CLR 282; C E Heath Underwriting Insurance (Aust) Pty Ltd v State Government Insurance Commission (1983) 34 SASR 1; Collyear v GCU Insurance Ltd [2008] NSWCA 92; Costi v Rodwell (1985) VR 287; Dawson v Bankers & Traders Insurance Co Ltd (1957) VR 491; Dering v Winchelsea (1787) 1 Cox Eq Cas 318; 29 ER 1184; The Distillers Co Bio-Chemicals (Aust) Pty Ltd v Ajax Insurance Co Ltd (1974) 130 CLR 1; Drake Insurance Plc v Provident Insurance Plc (2004) QB 601; Drayton v Martin (1996) 67 FLR 1; Edwards v Insurance Office of Australia Ltd (1933) 34 SR (NSW) 88; Emad Trolleys Pty Ltd v Shigar [2003] NSWCA 231; (2003) 57 NSWLR 636; GIO General Ltd v Insurance Australia Ltd [2008] ACTSC 38; Friend v Brooker [2009] HCA 21; (2009) 239 CLR 129; Government Insurance Office of New South Wales v Royal Exchange Assurance of London (1965) 82 WN (NSW) Pt 1 468; GRE Insurance Ltd v QBE Insurance Ltd (1985) VR 83; Legal and General Assurance Society Ltd v Drake Insurance Co Ltd (1992) 1 QB 887; Mahoney v McManus (1981) 180 CLR 375; Mercantile Mutural Insurance (Australia) Ltd v QBE Workers Compensation (NSW) Ltd [2004] NSWCA 409; (2004) 61 NSWLR 655; QBE Insurance (Australia) Ltd v Lumley General Insurance Ltd [2009] VSCA 124; (2009) 24 VR 326; Toll Pty Ltd v Dakic [2006] NSWCA 58; Workcover Queensland v Suncorp Metway Insurance Ltd [2005] QCA 155; (2005) 2 Qd R 210; Zurich Australian Insurance Ltd v CSR Ltd [2001] NSWCA 261; (2001) 52 NSWLR 193; Category: Principal judgment Parties: Zurich Australian Insurance Limited - Appellant GIO General Limited - Respondent Representation: Counsel B W Walker SC & B Hull - Appellant L King SC - Respondent Solicitors: Vardanega Roberts - Appellant Moray & Agnew - Respondent File Number(s): CA 2009/00289682 Publication restriction: No Decision under appeal Citation: Zurich Australian Insurance Ltd v GIO General Ltd [2010] NSWSC 85 Date of Decision: 2010-02-19 00:00:00 Before: Barrett J File Number(s): SC 2009/00289682