Michael & Rosemary Foy v Calliden Insurance Limited [2017] NSWDC 33

District Court New South Wales

Medium Neutral Citation: Michael & Rosemary Foy v Calliden Insurance Limited [2017] NSWDC 33 Hearing dates: 9 – 10 March 2016; 1 April 2016 (directions); 3 June 2016; 19 August 2016 (directions); and 4 November 2016 Date of orders: 03 March 2017 Decision date: 03 March 2017 Jurisdiction: Civil Before: Hatzistergos DCJ Decision: 1. Verdict for the Defendant; and 2. The Plaintiffs are to pay the Defendant's costs. Catchwords: CONTRACT LAW – INSURANCE – home building insurance – last resort policy – whether insurer breached contract – whether notification of loss was adequate – whether grace period applied –– whether failure to advise as to change in legislation amounts to misleading or deceptive conduct – unconscionable conduct – estoppel – whether insurer failed to pay claim contrary to s 54 of the Insurance Contracts Act

CONSTITUTIONAL LAW – whether Home Building Act 1989 (NSW) s 103BB inconsistent with Insurance Contracts Act 1984 (Cth) s 54 Legislation Cited: Australian Securities and Investment Commission Act 2001 (Cth) ss 12BB, 12CB, 12CC and 12DA Bell Group Companies (Finalisation of Matters and Distribution of Proceeds) Act 2015 (WA) Commonwealth of Australia Constitution Act 1901 (Cth) Home Building Act 1989 (NSW) ss 103B, 103BA, 103BB, sch 4 cl 86 and sch 4 cl 106 Home Building Amendment (Claims) Regulation 2008 (NSW) cl 63A Home Building Amendment (Insurance) Act 2009 (NSW) Home Building Amendment Act 2011 (NSW) Home Building Regulation 2004 (NSW) r 53(2) Insurance Contracts Act 1984 (Cth) ss 7 and 54 Interpretation Act 1987 (NSW) ss 30, 31 and 39 Judiciary Act 1903 (Cth) s 78B(2) Trade Practices Act 1974 (Cth) ss 51AC and 52 Cases Cited: Australian Competition and Consumer Commission v Allphones Retail Pty Ltd (No 2) [2009] FCA 17 Australian Competition and Consumer Commission v Dukemaster Pty Ltd [2009] FCA 682 Bell Group NV (in liq) v The State of Western Australia (2016) 90 ALJR 655; [2016] HCA 21 Commonwealth v Verwayen (1990) 170 CLR 394; [1990] HCA 39 Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Limited (1986) 160 CLR 226; [1986] HCA 14 Edgar v Farrow Mortgage Services Pty Ltd (in liq) (1992) ASC 56-186 FAI General Insurance Company Ltd v Australian Hospital Care Pty Ltd (2001) 204 CLR 641; [2001] HCA 38 Gosford City Council v GIO General Limited (2003) 56 NSWLR 542; [2003] NSWCA 34 Grundt v Great Boulder Pty Gold Mines Ltd (1937) 59 CLR 641 Johnson v Triple C Furniture & Electrical Pty Ltd (2010) 243 FLR 336; [2010] QCA 282 Kopriunjak v Vero Insurance Ltd (Home Building) [2008] NSWCTTT 1520 Maxwell v Highway Hauliers Pty Ltd (2014) 252 CLR 590; [2014] HCA 33 Michell & Thomas v Calliden Insurance Limited (Home Building) [2011] NSWCTTT 300 Morton v Hampson [1962] VR 364Ward v Walton (1989) 10 MVR 537 Nigel Watts Fashion Agencies Pty Ltd v GIO General Ltd [1994] NSWCA 365 Prepaid Services Pty Ltd & Ors v Atradius Credit Insurance NV [2013] NSWCA 252 Puckeridge v Calliden Insurance Limited (Home Building) [2013] NSWCTTT 450 Susiatin v Minister for Immigration and Multicultural Affairs (1998) 83 FCR 574 The Owners Strata Plan 57504 v Building Insurers' Guarantee Corporation [2008] NSWSC 1022 Thompson v Palmer (1933) 49 CLR 507 Tobacco Institute of Australia Ltd v Australian Federation of Consumer Organisations Inc (1992) 38 FCR 1 Walton Stores (Interstate) Ltd v Maher (1998) 164 CLR 387; [1988] HCA 7 Category: Principal judgment Parties: Mr Michael Foy (First Plaintiff) Ms Rosemary Foy (Second Plaintiff) Calliden Insurance Limited (Defendant) Representation: Counsel: Mr J Sleight (Plaintiff) Mr P Bambagiotti (Defendant)