DSHE Holdings Ltd (receivers and managers appointed) (in liq) v Abboud; National Australia Bank Limited v Abboud [2017] NSWSC 579

Supreme Court New South Wales

Medium Neutral Citation: DSHE Holdings Ltd (receivers and managers appointed) (in liq) v Abboud; National Australia Bank Limited v Abboud [2017] NSWSC 579 Hearing dates: 10 May 2017 Decision date: 12 May 2017 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Leave under s 6(4) of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW) refused Catchwords: INSURANCE – general insurance – s 6 of Law Reform (Miscellaneous Provisions) Act 1946 – whether plaintiffs should have leave under s 6(4) to commence proceedings against D&O insurers of director defendants – where common ground that plaintiffs have arguable case against director defendants and that policies respond to such claim and that director defendants unlikely to be able to meet any judgment – where insurers have confirmed cover but with reservations - whether any utility in granting leave Legislation Cited: Civil Liability (Third Party Claims Against Insurers) Bill 2017 Corporations Act 2001 (Cth) Law Reform (Miscellaneous Provisions) Act 1946 (NSW) Cases Cited: Bede Polding College v Limit (No 3) Limited [2008] NSWSC 887 BFSL 2007 Ltd (in liq) v Steigrad; Houghton v AIG Insurance New Zealand Limited [2014] 1 NZLR 304 Bradley v Eagle Star Insurance Co Ltd [1989] 1 AC 957 Chubb Insurance Co of Australia Ltd v Moore [2013] NSWCA 212; 302 ALR 101 Distillers Co Bio-Chemicals (Aust) Pty Ltd v Ajax Insurance Co Ltd [1974] HCA 3; 130 CLR 1 Opes Prime Stockbroking Ltd (in liq) (Scheme Administrators Appointed) v Stevens [2014] NSWSC 659 Oswald v Bailey (1987) 11 NSWLR 715 Tzaidas v Child [2004] 61 NSWLR 18 Wayland v Bird [2017] NSWCA 26 Category: Principal judgment Parties: In 2017/81927: DSHE Holdings Ltd (receivers and managers appointed) (in liq) (Plaintiff) Nicholas Abboud (First Defendant) Michael Thomas Potts (Second Defendant) Phillip John Cave (Third Defendant) Robert Murray (Fourth Defendant) William Paul Renton Wavish (Fifth Defendant) Lorna Kathleen Raine (Sixth Defendant) Robert Ishak (Seventh Defendant) Jamie Clifford Tomlinson (Eighth Defendant) Allianz Australia Insurance Ltd (Ninth Defendant) QBE Underwriting Ltd (for and on behalf of Syndicate 1886, as sub-syndicate of Syndicate 2999) (Tenth Defendant) Navigators Corporate Underwriters Ltd (for and on behalf of Syndicate 1221) and The Channel Managing Agency Ltd (for and on behalf of Syndicate 2015) (Eleventh Defendant) Chubb Insurance Australia (formerly known as ACE Insurance Ltd) (Twelfth Defendant) AIG Australia Ltd (Thirteenth Defendant) HDI-Global SE, Australia (Fourteenth Defendant) Liberty Mutual Insurance Company (Fifteenth Defendant) XL Insurance Company SE (Sixteenth Defendant) Berkley Insurance Australia (Seventeenth Defendant) Swiss Re International SE (Australia Branch) (Eighteenth Defendant)