QBE Insurance (Australia) Limited v Chatfield [2013] NSWDC 108

District Court New South Wales

Medium Neutral Citation: QBE Insurance (Australia) Limited v Chatfield [2013] NSWDC 108 Hearing dates: 14 and 24 June 2013 Decision date: 24 June 2013 Jurisdiction: Civil Before: P Taylor SC DCJ Decision: 1. Judgment for the plaintiff in the sum of $176,918.32. 2. The defendant to pay the plaintiff's costs assessed on an indemnity basis. Catchwords: CONTRACT - deposit bond - payment - whether bond payable - construction of terms of bond - construction of bond application - indemnity costs Legislation Cited: Duties Act 1997, s 204, s 207, s 211, s 304 Cases Cited: General Steel Industries Inc v Commissioner for Railways (1964) 112 CLR 125 Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service (No 3) [2010] NSWSC 1139 Reliance Developments (NSW) Pty Limited v Lumley General Insurance Limited [2008] NSWSC 172 Toll (FGCT) Pty Limited v Alphapharm Pty Limited (2004) 219 CLR 165 Category: Principal judgment Parties: QBE Insurance (Australia) Limited ACN 003 191 035 (plaintiff) Anne Louise Chatfield (defendant) Representation: Mr M S Henry (plaintiff) Mr J T Johnson with Mr Kalanter (defendant) Polczynski Lawyers (plaintiff) Hickey Law (defendant) File Number(s): 2013/12938 Publication restriction: No

ex tempore Judgment

QBE Insurance (Australia) Limited 1QBE Insurance (Australia) Limited ("QBE") provided a deposit bond for Anne Chatfield in respect of a property in Gloucester Street, The Rocks, that Ms Chatfield contracted to purchase. Subsequently, the vendor purported to terminate the contract and claimed the deposit under the bond, which QBE paid. QBE seeks to recover the amount paid and related expenses from Ms Chatfield, but this is resisted on the basis that QBE was not, in the circumstances, obliged to pay the deposit to the vendor.