Chubb Insurance Company of Australia Limited v Moore [2013] NSWCA 212

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Chubb Insurance Company of Australia Limited v Moore [2013] NSWCA 212 Decision date: 11 July 2013 Before: Bathurst CJ at [1]; Beazley P at [2]; Macfarlan JA at [3]; Emmett JA and Ball J at [4]. Decision: The Court orders that: 1. No later than 18 July 2013, the plaintiffs file and serve short minutes of orders to give effect to the conclusions stated in the reasons of the Court of 11 July 2013. 2. No later than 18 July 2013, the plaintiffs file and serve any submissions they wish to make as to costs. 3. No later than 25 July 2013, all defendants file and serve any submissions they wish to make in relation to the proposed short minutes of orders and as to costs. [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 - separate questions to be decided by Court of Appeal based on statement of agreement facts - directors' and officers' liability insurance contracts - proper construction of s 6 Law Reform (Miscellaneous Provisions) Act 1946 - territorial operation of s 6 - whether s 6 applies to claims made policies - whether s 6 applies where insured's alleged conduct giving rise to claim for damages or compensation happened before policy entered into - whether The Owners - Strata Plan No 50530 v Walter Construction Group Limited [2007] NSWCA 124, which held that s 6 does not apply where insured's alleged conduct giving rise to claim for damages or compensation happened before policy entered into, should be followed - whether Court of Appeal when constituted as a bench of five will more readily overrule its own decisions or only when decision plainly wrong - whether "insurance moneys that are or may become payable" on which s 6 imposes charge include defence costs paid by insurer under policy before claimant's claim determined - whether insurer's payment in respect of insured's liability, excluding defence costs, is valid discharge to insurer if made before claimant's claim determined - whether insurers on actual notice of existence of charges under s 6 by reason of correspondence from claimants' solicitors Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) Bankruptcy Act 1966 (Cth) s 117 Civil Liability Act 2005 s 5N Corporations Act 2001 (Cth) Ch 5C, s 562 Fair Trading Act 1987 s 42 Fair Trading Act 1987 (WA) Fair Trading Act 1999 (Vic) Interpretation Act 1987 s 12(1)(b) Law Reform (Miscellaneous Provisions) Act 1946 s 6 Law Reform Act 1936 (NZ) s 9 Motor-vehicle Insurance (Third-party Risks) Act 1928 (NZ) s 10 Supreme Court Act 1970 Supreme Court Act 1986 (Vic) Pt IVA Workers Compensation Act 1908 (NZ) s 42 Workers Compensation Act 1922 (NZ) Cases Cited: Voth v Manildra Flour Mills Pty Ltd [1990] HCA 55; (1990) 171 CLR 538 FAI General Insurance Limited v McSweeney [1997] FCA 152; (1997) 73 FCR 379 Solomons v District Court of New South Wales [2002] HCA 47; (2002) 211 CLR 119 Meyer Heine Pty Ltd v China Navigation Co Ltd [1966] HCA 11; (1966) 115 CLR 10 Hore v Albury Radio Taxis Co-op Society Ltd [2002] NSWSC 1130; (2002) 56 NSWLR 210 FAI Insurance Limited v Hospital Care Pty Ltd [2001] HCA 38; (2001) 204 CLR 641 Kay's Leasing Corporation Pty Ltd v Fletcher [1964] HCA 79; (1964) 116 CLR 124 Ludgater Holdings Ltd v Gerling Australia Insurance Co Pty Ltd [2010] 3 NZLR 713 Mynott v Barnard [1939] HCA 13; (1939) 62 CLR 68 Dow Jones & Co Inc v Gutnick [2002] HCA 56; (2002) 210 CLR 575 John Pfeiffer Pty Ltd v Rogerson [2000] HCA 36; (2000) 203 CLR 503 Clarke v Commissioner of Taxation [2009] HCA 33; (2009) 240 CLR 272 Re Wakim; ex parte McNally [1999] HCA 27; (1999) 198 CLR 511 McMillan v Mannix (1993) 31 NSWLR 538 New South Wales Medical Defence Union v Crawford (1993) 31 NSWLR 469 Scarcella v Lettice [2000] NSWCA 289; (2000) 51 NSWLR 302 Caltex Oil (Aust) Pty Ltd v The Dredge Willemstad [1976] HCA 65; (1976) 136 CLR 529 Steigrad v BFSL 2007 Ltd [2012] NZCA 604 Steigrad v BFSL 2007 Ltd [2011] NZHC 1037; (2011) 16 ANZ-Ins Cas 61-910 Bradley v Eagle Star Insurance Co Ltd [1989] 1 AC 957 Distillers Co Biochemicals (Aust) Pty Ltd v Ajax Insurance Co Ltd [1974] HCA 3; (1974) 130 CLR 1 Bailey v New South Wales Medical Defence Union Limited [1995] HCA 28; (1995) 184 CLR 399 Insight Vacations Pty Ltd v Young [2011] HCA 16; (2011) 243 CLR 149 Wanganui-Rangitikei Electric Power Board v Australian Mutual Providence Society [1934] HCA 3; (1934) 50 CLR 581 Barcelo v Electrolytic Zinc Company of Australasia Limited [1932] HCA 52; (1932) 48 CLR 391 The Owners - Strata Plan No 50530 v Walter Construction Group Limited (In Liquidation) & Ors [2007] NSWCA 124; (2007) 14 ANZ-Ins Cas 61-734 Northern Territory v Mengel [1995] HCA 65; (1995) 185 CLR 307 Imbree v McNeilly [2008] HCA 40; (2008) 236 CLR 510 Cain v Malone [1942] HCA 20; (1942) 66 CLR 10 Clutha Developments Pty Ltd v Barry (1989) 18 NSWLR 86 Gett v Tabet [2009] NSWCA 76; (2009) 254 ALR 504 Texts Cited: Speech on the Second Reading of the Law Reform (Miscellaneous Provisions) Bill, New South Wales Legislative Council, Parliamentary Debates, 20 March 1946 Category: Principal judgment Parties: Chubb Insurance Company of Australia Limited (First Plaintiff) Liberty Mutual Insurance Company t/as Liberty Insurance Underwriters (Second Plaintiff) Allianz Australia Insurance Limited (Third Plaintiff) Chartis Australia Insurance Limited (Fourth Plaintiff) AXIS Specialty Europe Public Limited Company t/a AXIS Specialty Australia (Fifth Plaintiff) QBE Insurance (Australia) Limited (Sixth Plaintiff) Wesfarmers General Insurance Limited (Seventh Plaintiff) Margaret Moore (First Defendant) Michael Snelgrove (Second Defendant) Peter Clarke as Trustee for the Clarke Family Trust (Third Defendant) Samantha Murray (Fourth Defendant) Raymond Drummond (Fifth Defendant) Laurence Hogan (Sixth Defendant) Jaclyne Fisher (Seventh Defendant) Adrian Williams (Eighth Defendant) Mohetishwar Prasad (Ninth Defendant) Janet Micallef (Tenth Defendant) Glenn Ford (Eleventh Defendant) Great Southern Managers Australia Limited (Receivers & Managers Appointed) (in liquidation) (Twelfth Defendant) John Young (Thirteenth Defendant) Cameron Rhodes (Fourteenth Defendant) Phillip Butlin (Fifteenth Defendant) Peter Patrikeos (Sixteenth Defendant) Jeffrey Mews (Seventeenth Defendant) Murray Colvin (Eighteenth Defendant) Steven Cole (Nineteenth Defendant) Robert Jenkins (Twentieth Defendant) Representation: Counsel: D L Williams SC, J A Redwood and M F Newton (Plaintiffs) N C Hutley SC and T Prince (First and Second Defendants) A S Bell SC and A Munro (Third to Eleventh Defendants) G K Rich (Fourteenth & Fifteenth Defendants) T W Marskell (Thirteenth, Sixteenth, Seventeenth Defendants) M D Howard SC and J D Steedman (Eighteenth, Nineteenth, Twentieth Defendants) Solicitors: Colin Biggers & Paisley (Plaintiffs) Solomon Brothers (First & Second Defendants) Macpherson + Kelley Lawyers (Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth & Eleventh Defendants) DLA Piper (Twelfth Defendant) Colin Biggers & Paisley (Thirteenth Defendant) Arnold Bloch Leibler (Fourteenth & Fifteenth Defendants) Moray & Agnew (Sixteenth & Seventeenth Defendants) Karp Steedman Ross-Adjie (Eighteenth Defendant) Lavan Legal (Nineteenth & Twentieth Defendants) File Number(s): CA 2013/31425