Compagnie Francaise D'Assurance Pour le Commerce Exterieur t/as Coface Australia v Sims Group Australia Holdings Ltd [2013] NSWCA 418

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Compagnie Francaise D'Assurance Pour le Commerce Exterieur t/as Coface Australia v Sims Group Australia Holdings Ltd [2013] NSWCA 418 Hearing dates: 1 November 2013 Decision date: 11 December 2013 Before: Barrett JA at [1]; Ward JA at [2]; Sackville AJA at [103] Decision: 1. Appeal allowed in part. 2. Set aside the orders made by Walmsley DCJ and in lieu thereof order that the defendant pay to the plaintiff $299,250 (being 90% of the sum obtained by subtracting $286,976.01 from $619,476) plus interest on that sum. 3. Direct parties to bring short minutes of order quantifying the amount plus interest in accordance with the judgment. 4. Appellant to pay respondent's costs of the appeal. [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: CONTRACTS - general contractual principles - construction and interpretation of contracts - whether amounts were owing 'under' the contract for the sale of a business or 'in connection with' contract for sale of business so as to fall within a charge at time insured released the charge

INSURANCE - other indemnity insurances - trade credit insurance - where insured released a charge over the assets of another company that was indebted to it - whether insured acted as a prudent uninsured - whether release of the charge prejudiced the appellant's interests Legislation Cited: Insurance Contracts Act 1984 (Cth) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Brooke v Haymes (1868) LR 6 Eq 25 Brown v Rezitis [1970] HCA 56; (1970) 127 CLR 157 Carpenter v Buller (1841) 8 M & W 209 Centennial Coal Co Ltd v Xstrata Coal Pty Ltd [2009] NSWCA 341; (2009) 76 NSWLR 129 Dwyer v Craft Printing Pty Ltd [2009] NSWCA 405 Ex parte Morgan (1876) 2 Ch D 72 CA Greer v Kettle [1938] AC 156 Labracon Pty Limited v Cuturich & Anor [2013] NSWSC 97 Marryatts v White 1817 (1927) 171 ER 586 McCathie v McCathie [1971] NZLR 58 Minister for Immigration v Singh [2000] FCA 845; (2000) 98 FCR 469 Mita Copiers Australia Pty Ltd v Condor OA Pty Ltd, NSWSC unreported 10 October 1994, Hunter J Moltoni Corporation Pty Ltd v QBE Insurance Ltd [2001] HCA 73; (2001) 205 CLR 149 Tana v Baxter [1986] HCA 69; (1986) 160 CLR 572 Wilson v Wilson [1969] 1 WLR 1470 Texts Cited: Handley, Estoppel by Conduct and Election, (2006) Thomson Sweet & Maxwell Category: Principal judgment Parties: Compagnie Francaise D'Assurance Pour le Commerce Exterieur t/as Coface Australia (Appellant) Sims Group Australia Holdings Ltd (Respondent) Representation: Counsel: M S Henry SC (Appellant) T Mehigan (Respondent) Solicitors: Polczynski Lawyers (Appellant) DibbsBarker (Respondent) File Number(s): CA 2013/143975 Decision under appeal Jurisdiction: 9101 Date of Decision: 2013-04-12 00:00:00 Before: Walmsley DCJ File Number(s): DC 2011/024652