Allianz Australia Insurance Limited v Anthony Vitale and Anor [2014] NSWSC 364

Supreme Court New South Wales

Medium Neutral Citation: Allianz Australia Insurance Limited v Anthony Vitale and Anor [2014] NSWSC 364 Hearing dates: 24, 25 March 2014 Decision date: 01 April 2014 Jurisdiction: Equity Division Before: Sackar J Decision: See paragraph [138] and [139] Catchwords: BUILDING AND CONSTRUCTION - Home Building Act - where requirement for home warranty insurance - whether unconscionable for insurer to require director of builder to execute deed of indemnity as condition of insurance - Insurance Contracts Act - duty of good faith - whether duty applies to third parties

EQUITY - unconscionable conduct - where requirement for indemnity as condition of insurance - commercial vulnerability - where strong bargaining position of insurer is the result of statutory regime

COSTS - where party has executed deed of indemnity - whether party entitled to assessment of legal costs payable under deed of indemnity - where substantial delay and issue not raised until closing submissions - where no challenge to evidence of payment of legal costs at trial Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) Home Building Act 1989 Insurance Contracts Act 1984 (Cth) Insurance Contracts Amendment Act 2013 (Cth). Legal Profession Act 2004 Trade Practices Act 1974 (Cth) Cases Cited: Aboody v Ryan [2012] NSWCA 395 ACCC v CG Berbatis (2003) 214 CLR 51 ACCC v Samton Holdings Pty Ltd (2002) 117 FCR 301 ASIC v National Exchange Pty Ltd (2005) 148 FCR 132 Australian Competition and Consumer Commission v Lux Pty Ltd [2004] FCA 926 Avery v Saree Holdings Ltd; Lava Ltd v Avery (No. 2) [2012] NSWSC 938 Blomley v Ryan (1956) 99 CLR 362 Boyce v McIntyre [2008] NSWSC 1218 Bridgewater v Leahy (1998) 194 CLR 457 Burger King Corporation v Hungry Jack's Pty Ltd [2001] NSWCA 187 Camellia Properties v Wesfarmers General Insurance Ltd [2013] NSWSC 1975 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 Director of Consumer Affairs Victoria v Scully (2013) 303 ALR 168 Hannover Life Re of Australasia Limited v Sayseng [2005] NSWCA 214 Kakavas v Crown Melbourne Limited [2013] HCA 25 Louth v Diprose (1992) 175 CLR 621 Smart v Westpac Banking Corporation [2011] FCA 829 Tanwar Enterprises Pty Ltd v Cauchi and Others (2003) 217 CLR 315 Tarkington Pty Ltd v Kingdrake Pty Ltd [2000] VSCA 98 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 Tonto Home Loans Australia Pty Ltd v Tavares [2011] NSWCA 389 Tudor Developments Pty Ltd v Makeig [2008] NSWCA 263 Vero Insurance v The Owners of Strata Plan 69352 [2011] NSWCA 138; (2011) 81 NSWLR 227 Zurich Australian Insurance Ltd v Metals and Minerals Insurance Pte Ltd (2009) 240 CLR 391 Texts Cited: N/a Category: Principal judgment Parties: Allianz Australia Insurance Limited - plaintiff Anthony Vitale and Giuliana Vitale - defendants Representation: Counsel: M Ashhurst SC, A Smith - plaintiff J Hyde - defendants Solicitors: Moray & Agnew - plaintiff Ronayne Lawyers - defendants File Number(s): 2010/93159