Johnston v Endeavour Energy [2015] NSWSC 1117

Supreme Court New South Wales

Medium Neutral Citation: Johnston v Endeavour Energy [2015] NSWSC 1117 Hearing dates: 26 March 2015, 27 March 2015, 1 May 2015 Date of orders: 19 August 2015 Decision date: 19 August 2015 Before: Garling J Decision: Proceedings stood over to 21 August 2015 at 9.30am for final orders Catchwords: PRACTICE AND PROCEDURE – representative proceedings – validity of opt out notices – where Insurers opted insureds out from existing proceedings – whether solicitor had authority to file opt out notices on behalf of insureds – whether insurer can commence proceedings in name of insured without authority – PRACTICE AND PROCEDURE – representative proceedings – standing – definition of group member in Insurers proceedings excludes an individual from being a member in both proceedings – where plaintiff in initial proceedings not opted out by Insurers – whether standing to bring motion and obtain relief sought – whether interference in Insurers proceedings by 'stranger' not part of proceedings – plaintiff represents interests of whole group – s 158(3) Civil Procedure Act – that plaintiff not personally opted out does not reduce his standing to contest validity of the opt out notices – CONTRACT – construction – insurance contracts – assignment of rights – whether assignment of insured's right to insurer – need for explicit contractual basis for insurer to have authority to discontinue an insureds participation in existing proceedings – EQUITY – subrogation – rights of insurers – whether right to recover uninsured losses – STATUTORY INTERPRETATION – scope and application of s 183 Civil Procedure Act 2005 – general power of court to make any order appropriate or necessary to do justice – whether power broad enough to make orders sought – CONSTITUTIONAL LAW – whether Court engaged in an exercise of judicial power arising under Ch III of the constitution – meaning of 'matter' – whether matter of legitimate and real controversy – issues raise a matter such that the Court can legitimately exercise Federal jurisdiction – Court not precluded from determining relief sought Legislation Cited: Civil Liability Act 2002 Civil Procedure Act 2005 Court Suppression and Non-Publication Orders Act 2010 Evidence Act 1995 Federal Court of Australia Act 1976 (Cth) Insurance Contracts Act 1984 (Cth) Limitation Act 1969 Uniform Civil Procedure Rules Cases Cited: AFG Insurances Ltd v City of Brighton (1972) 126 CLR 655 Arthur Barnett Ltd v National Insurance Co of New Zealand Ltd [1965] NZLR 874 Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd [2008] NSWCA 243 Buckee v The Commonwealth of Australia [2014] FCA 242 Carnie v Esanda Finance Corporation Ltd (1995) 182 CLR 398 Castellain v Preston (1883) 11 QBD 380 Commercial Union Assurance Co Ltd v Lister (1874) Vol IX LR Chancery Appeals 483 Courtney v Medtel Pty Ltd [2002] FCA 957; (2002) 122 FCR 168 Earglow Pty Ltd v Newcrest Mining Ltd [2015] FCA 328 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7 Fencott v Muller [1983] HCA 12; (1983) 152 CLR 570 Globe & Rutgers Fire Insurance Co v Truedell [1927] 2 DLR 659 In re Judiciary and Navigation Acts [1921] HCA 20; (1921) 29 CLR 257 Investors Compensation Scheme Ltd v West Bromwich Building Society [1997] UK HL 28; (1998) 1 WLR 896 Johnson Tiles Pty Ltd v Esso Australia Ltd [1999] FCA 56 Johnstone and Williams v FAI Home Security Pty Ltd (No.3) [2000] FCA 1438 Johnstone v HIH Ltd [2004] FCA 190 Kirby v Centro Properties Ltd [2008] FCA 1505 Lopez v Star World Enterprises Pty Ltd (In Liq) (VG 133 of 1997, unreported, Finkelstein J 31 October 1997) Lord Napier and Ettrick v Hunter [1993] AC 713 Maggbury Pty Ltd v Hafele Australia Pty Ltd [2001] HCA 70; (2001) 210 CLR 181 McCann v Switzerland Insurance Australia Ltd [2000] HCA 65; (2000) 203 CLR 579 McMullin v ICI Australia Operations Pty Ltd (1998) 84 FCR 1 Mobil Oil Australia Pty Ltd v State of Victoria [2002] HCA 27; (2002) 211 CLR 1 Morley v Moore [1936] 2 KB 359 Re Dalma (No.1) Pty Ltd (In liq) [2013] NSWSC 1335 Re McBain; Ex Parte Australian Catholic Bishops Conference [2002] HCA 16; (2002) 209 CLR 372 Stewart v Atco Controls Pty Ltd [2014] HCA 15 Truth About Motorways Pty Ltd v Macquarie Infrastructure Investment Management Ltd [2000] HCA 11; (2000) 200 CLR 591 Williams v FAI Home Security Pty Ltd (No.3) [2000] FCA 1438 Texts Cited: MacGillivray on Insurance Law 5th Ed Meagher Gummow and Lehane's Equity Doctrines and Remedies 5th Ed Category: Procedural and other rulings Parties: Sean Johnston (P) Endeavour Energy (D1) Osborne Aviation Services Pty Ltd (D2) Representation: Counsel: