Ransley v Chubb Insurance Company of Australia Limited [2015] NSWSC 854

Supreme Court New South Wales

Medium Neutral Citation: Ransley v Chubb Insurance Company of Australia Limited [2015] NSWSC 854 Hearing dates: 24 June 2015 Decision date: 02 July 2015 Before: Ball J Decision: 1. The separate questions should be answered as follows:

Question 1: The defendant's maximum liability under Insuring Clause 1.D in respect of each claim by a former director who incurred Legal Representation Expenses in relation to the Inquiry depends on the extent to which Limit of Liability specified in Item 2(a) of the Schedule has been eroded by claims for Legal Representation Expenses already paid by the defendant. The defendant's liability does not exceed $1 million in aggregate (and a further $1 million in the aggregate under Extension 2.F if claims for Legal Representation Expenses are made under that Extension).

Question 2: $1 million (plus a further $1 million in the aggregate under Extension 2.F if claims for Legal Representation Expenses are made under that Extension).

2. The plaintiff should pay the defendant's costs of and incidental to the hearing of the separate questions;

3. Stand the matter over for directions before the List Judge on 10 July 2015. Catchwords: CONTRACTS – General contractual principles – Construction and interpretation of contracts – Construction of directors and officers insurance policy – Where coverage is sought for legal expenses arising from formal investigation – Whether cover available under insuring clause is available in respect of each insured person or in respect of all persons incurring legal expenses with respect to a formal investigation in the aggregate – Whether construction limiting insurer's liability to aggregate of insured persons with respect to each formal investigation is uncommercial Category: Procedural and other rulings Parties: Craig Anthony Ransley (Plaintiff) Chubb Insurance Company of Australia Limited ABN 69 003 710 647 (Defendant) Representation: Counsel: A P Coleman SC | Ms J Curtin (Plaintiff) T M Mehigan (Defendant)