Angas Securities Ltd v Small Business Consortium Lloyds Consortium No. 9056 [2016] NSWCA 182

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Angas Securities Ltd v Small Business Consortium Lloyds Consortium No. 9056 [2016] NSWCA 182 Hearing dates: 15 June 2016 Decision date: 02 August 2016 Before: McColl JA at [1]; Leeming JA at [2]; Sackville AJA at [32] Decision: 1. Appeal dismissed. 2. The Appellant pay the Respondent's costs of the appeal. Catchwords: CONTRACT – construction of deed of release – appellant (insured) lends money on security of first mortgage – insured makes claim under mortgage indemnity policy issued by the respondent (insurer) – insurer makes payment under the policy – insurer contributes to costs of insured's action against a valuer – insured recovers damages from valuer in respect of both indemnified and non-indemnified losses – insurer relies on deed of release to claim priority for repayment of the amount paid to insured – whether the deed of release was intended to expand the insurer's right of subrogation under the policy Legislation Cited: Insurance Contracts Act 1984 (Cth), s 67 Trade Practices Act 1974 (Cth), s 52 Cases Cited: AFC Holdings Pty Ltd v Shiprock Holdings Pty Ltd [2010] NSWSC 985; 15 BPR 28,199 Angas Securities Ltd v Valcorp Australia Pty Ltd [2011] FCA 190; 277 ALR 538 Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd [2008] NSWCA 243; 15 ANZ Ins Cases 61-780 Beaufort Developments (NI) Ltd v Gilbert-Ash (NI) Ltd [1999] 1 AC 266 British Traders' Insurance Co Ltd v Monson [1964] HCA 24; 111 CLR 86 Byrnes v Kendle [2011] HCA 26; 243 CLR 253 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales [1982] HCA 24; 149 CLR 337 International Air Transport Association v Ansett Australia Holdings Ltd [2008] HCA 3; 234 CLR 151 Mainteck Services Pty Ltd v Stein Heurtey SA [2014] NSWCA 184; 89 NSWLR 633 Masters v Cameron [1954] HCA 72; 91 CLR 353 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; 89 ALJR 990 Perpetual Trustees Victoria Ltd v Cox [2014] NSWCA 328; 17 BPR 33,313 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 52; 219 CLR 165 Valcorp Australia Pty Ltd v Angas Securities Ltd [2012] FCAFC 22 Victoria v Tatts Group Ltd [2016] HCA 5; 90 ALJR 392 Texts Cited: D Reynolds, "Construction of contracts after Mount Bruce Mining v Wright Prospecting" (2016) 90 Australian Law Journal 190 Category: Principal judgment Parties: Angas Securities Limited (Appellant) Small Business Consortium Lloyds Consortium No. 9056 (Respondent) Representation: Counsel: Mr BC Roberts SC (Appellant) Mr SR Donaldson SC / Mr RE Raffell (Respondent)