Carroll v United Super Pty Ltd [2018] NSWSC 403

Supreme Court New South Wales

Medium Neutral Citation: Carroll v United Super Pty Ltd [2018] NSWSC 403 Hearing dates: 7, 8, 9, 23, 24 and 25 November 2016, 2, 6 December 2016, 17 February 2017 Date of orders: 04 April 2018 Decision date: 04 April 2018 Jurisdiction: Equity Before: Slattery J Decision: See paragraphs 279 – 281 Catchwords: INSURANCE – General – total and permanent disablement – plaintiff/insured self-employed in the building and construction industry – plaintiff suffers hip disability and ceases work in March 2012 – plaintiff a member of an industry superannuation fund – first defendant is a trustee of the fund – first defendant takes out a policy of insurance for the benefit of members of the fund with the second defendant insurer – plaintiff claims he is totally and permanently disabled after being off work for three months and entitled to a benefit for the same – the first and second defendants decline the plaintiff's claim on various dates between June 2013 and April 2014 – identification of the duties applicable to each of the first and second defendants in making their decisions to decline the plaintiff's claim – whether the first defendant trustee failed to act in good faith on a real and genuine consideration of the material before it – whether the second defendant insurer acted with the utmost good faith in dealing with the plaintiff's claim and reasonably in forming an opinion as to whether the plaintiff qualified as totally and permanently disabled under the policy – whether the defendants' respective decisions can be set aside – whether the Court should itself determine whether the plaintiff is totally and permanently disabled under the policy – whether the plaintiff was "unlikely to ever to be able to engage in any regular remuneration work for which he is suited by education training or experience". Cases Cited: Associated Provincial Picture Houses Ltd v Wednesbury Corporation [1948] 1 KB 223 Banovic v United Super Pty Ltd [2014] NSWSC 1470 Beverly v Tyndall Life Insurance Co Ltd (1999) 21 WAR 327 Birdsall v Motor Trades Association of Australia Superannuation Fund Pty Ltd [2015] NSWCA 104 Chammas v Harwood Nominees (1993) 7 ANZ Ins Cas 61-175 CGU Insurance Ltd v AMP Financial Planning Pty Ltd (2007) 235 CLR 1 Dewhirst v Edwards [1983] 1 NSWLR 34 Edwards v The Hunter Valley Co-op Dairy Co Ltd (1992) 7 ANZ Ins Cas 61-113 Erzurumlu v Kellogg Superannuation Pty Ltd [2013] NSWSC 1115 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89 Finch v Telstra Super Pty Ltd (2010) 242 CLR 254 Halloran v Hardwood Nominees Pty Ltd [2007] NSWSC 913 Hannover Life Re of Australasia Ltd v Colella (2014) 47 VR 1 Hannover Life Re of Australasia Ltd v Dargan (2013) 83 NSWLR 246 Hannover Life Re of Australasia Ltd v Jones [2017] NSWCA 233 Hannover Life Re of Australia Ltd v Sayseng [2005] NSWCA 214 Jones v United Super Pty Limited [2016] NSWSC 1551 Lazarevic v United Super Pty Ltd [2014] NSWSC 96 McArthur v Mercantile Mutual Life Insurance [2002] 2 Qd R 197 Lodge v National Union Investment Co Limited (1907) 1 Ch 300 Repatriation Commission v Hill (2005) 142 FCR 88 Savelberg v United Super Pty Ltd [2011] NSWSC 1482 Sayseng v Kellogg Superannuation Pty Ltd [2003] NSWSC 945 Tal Life Ltd v Shuetrim; Metlife Insurance Ltd v Shuetrim (2016) 91 NSWLR 439 Wardley Australia Limited v the State of Western Australia (1992) 175 CLR 514 Weber v v Tiss Pty Ltd [2005] NSWSC 67 Wells v Australian Aviation Underwriting Pool [2004] QCA 43 Wyllie v National Mutual Life Association of Australasia Ltd (1997) 217 ALR 324 Ziogos v FSS Trustee Corporation as Trustee of the First State Superannuation Scheme [2015] NSWSC 1385 Texts Cited: Enright and Merkin, Sutton on Insurance Law (4th ed, Volume 2, 2014, Thomson Reuters) JD Heydon, MJ Leeming and PG Turner, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th ed, 2014, LexisNexis Butterworths) Category: Principal judgment Parties: Plaintiff: Nicholas Carroll First Defendant: United Super Pty Ltd (ABN 46 006 261 623) Second Defendant: Hannover Life Re of Australasia Ltd (ABN 37 062 395 484) Representation: Counsel