In the matter of HIH Casualty & General Insurance Ltd (in liquidation and subject to schemes of arrangement) [2013] NSWSC 741

Supreme Court New South Wales

Medium Neutral Citation: In the matter of HIH Casualty & General Insurance Ltd (in liquidation and subject to schemes of arrangement) [2013] NSWSC 741 Hearing dates: 01.05.13, 02.05.13, 09.05.13, 17.05.13, 24.05.13 Decision date: 12 June 2013 Before: Nicholas J Decision: Pars 128, 130 Catchwords: WINDING UP - insolvency - insurer - contracts of reinsurance - distribution of reinsurance proceeds - insured's application for order under s 562A(4) Corporations Act 2001 (Cth) that reinsurance proceeds be applied to specific insurance liabilities and not to insolvent insurer's liabilities as whole - reinsurance proceeds received as balance of account of mutual dealings under s 553C - ascertainment of amount received in respect of insolvent insurer's liability under s 562A(1)(b) - whether "just and equitable" that an order be made under s 562A(4) Legislation Cited: Corporations Act 2001 (Cth) Cases Cited: Amaca Pty Ltd v McGrath & Ors [2011] NSWSC 90; 82 ACSR 281 Amaca Pty Ltd v McGrath & Ors [2012] NSWSC 1523; 92 ACSR 105 New Cap Reinsurance Corporation (in liq.) v Faraday Underwriting Ltd [2003] NSWSC 842 In the matter of AT Air Group Pty Ltd (in liq.) [2012] NSWSC 1508 Stein v Blake [1996] 1 AC 243 Newcap Reinsurance Corporation (in liq.) v Faraday Underwriting Ltd [2003] NSWSC 842, (2003) 47 ACSR 306 Category: Principal judgment Parties: Sydney Water Corporation - plaintiff Anthony Gregory McGrath & Christopher John Honey (as liquidators of the HIH Group of companies) - first defendant HIH Casualty & General Insurance Ltd (in liquidation and subject to schemes of arrangement) - second defendant Representation: Counsel: K Rees SC - plaintiff R Dick SC/R M Foreman - defendants Solicitors: Clayton Utz - plaintiff Ashurst Australia - defendants File Number(s): 12/310781