Forge Group Ltd (in liq) (receivers and managers appointed) v Hutchinson [2018] NSWSC 467

Supreme Court New South Wales

Medium Neutral Citation: Forge Group Ltd (in liq) (receivers and managers appointed) v Hutchinson [2018] NSWSC 467 Hearing dates: 06 April 2018 Date of orders: 06 April 2018 Decision date: 17 April 2018 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Fourteenth to Seventeenth defendants to pay plaintiff's costs of its application for leave under the Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW) from and including 25 October 2017 Catchwords: COSTS – Party/Party – Costs orders in interlocutory proceedings – where application made for leave to proceed against D&O insurers of former directors of plaintiff under the Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW) – where solicitors for insurers belatedly notified solicitors for plaintiff that primary insurers had admitted liability to indemnify most of the director defendants subject to the customary reservations – where plaintiff withdrew claim for leave once aware that all insurers had so admitted liability – whether plaintiff should have its costs of the application from the time when primary insurers had admitted liability to most directors

PROFESSIONS AND TRADES – Lawyers – Duties and liabilities – duty of solicitors under s 56(4) of the Civil Procedure Act 2005 (NSW) to cause clients not to be in breach of duty to assist court with overriding purpose to facilitate just, quick and cheap resolution of issues in proceedings - where solicitor for insurers did not cause insurers to inform solicitors for the plaintiff of their admission of liability to indemnify most defendant insurers - where solicitor for insurers said solicitors for plaintiff then correct to assume liability had not been admitted Legislation Cited: Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW) Civil Procedure Act 2005 (NSW) Law Reform (Miscellaneous) Provisions Act 1946 (NSW) Cases Cited: DSHE Holdings (receivers and managers appointed) (in liq) v Abboud; National Australia Bank v Abboud [2017] NSWSC 579 Category: Procedural and other rulings Parties: Forge Group Limited (in liq) (receivers and managers appointed) (Plaintiff) Chubb Insurance Australia Ltd (formerly ACE Insurance Limited) (Fourteenth Defendant) Allianz Australia Insurance Limited (Fifteenth Defendant) Axis Specialty Europe SE (Sixteenth Defendant) Liberty Mutual Insurance Company (Seventeenth Defendant) Representation: Counsel: D A McLure SC (Plaintiff) J Dooley (Fourteenth to Seventeenth Defendants)