Bank of Queensland Ltd v AIG Australia Ltd [2018] NSWSC 1689

Supreme Court New South Wales

Medium Neutral Citation: Bank of Queensland Ltd v AIG Australia Ltd [2018] NSWSC 1689 Hearing dates: 8-10 October 2018 Decision date: 06 November 2018 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Loss for which defendant insurers are liable arises from multiple "Claims" Catchwords: BANKING AND FINANCE – banker and customer relationship – money market deposit accounts – deposits recommended by financial planner – financial planner alleged to have engaged in Ponzi Scheme – monies in accounts misappropriated – monies allegedly withdrawn without mandate – monies allegedly withdrawn with knowledge of fraud

INSURANCE – liability insurance – aggregation clause – proper construction – how many "Claims" made in representative proceedings – whether loss for which insurers are liable arises from one "Claim" or multiple "Claims" – unifying factor – how many "Wrongful Acts" – whether there was a "series of related" Wrongful Acts – whether the wrongful acts "unrelated" – whether plaintiff's claim under policy subject to one or to multiple retentions Legislation Cited: Federal Court of Australia Act 1976 (Cth) Limitation of Actions Act 1974 (Qld) Cases Cited: AIG Europe Ltd v Woodman [2017] UKSC 18; (2017) Lloyd's Rep IR 209 American Automobile Insurance Co v Grimes 2004 US Dist LEXIS 1696 Attorney-General v Cohen [1937] 1 KB 478; [1973] 1 All ER 27 Barnes v Addy (1874) LR 9 Ch App 244 Cameron v National Mutual Life Association of Australasia Ltd (No 2) [1992] 1 Qd R 133 Distillers Co (Bio-Chemicals) (Aust) Pty Ltd v Ajax Insurance Co Ltd (1974) 130 CLR 1 Lloyds TSB General Insurance Holdings Ltd v Lloyds Bank Group Insurance Co Ltd [2001] 1 All ER (Comm) 13 Lloyds TSB General Insurance Holdings Ltd v Lloyds Bank Group Insurance Co Ltd [2003] 4 All ER 43; [2003] UKHL 48 Morgan, in the matter of Brighton Hall Securities Pty Ltd (in liq) [2013] FCA 970 Ritchie v Woodward (Executor of the Estate of the late Brian Patrick Woodward); Rujo Pty Ltd v Woodward (Executor of the Estate of the late Brian Patrick Woodward); Barona Group Pty Ltd v Woodward (Executor of the Estate of the late Brian Patrick Woodward) [2016] NSWSC 1715 SMA Solar Technology AG v Beyond Building Systems Pty Ltd (No 5) [2012] FCA 1483 Wileypark Pty Ltd v AMP Ltd [2018] FCAFC 143 Texts Cited: D K Derrington and R S Ashton, The Law of Liability Insurance (3rd ed, 2013, Lexis Nexis Butterworths) Category: Principal judgment Parties: Bank of Queensland Limited (Plaintiff) AIG Australia Limited (First Defendant) Zurich Australian Insurance Limited (Second Defendant) Catlin Australia Pty Ltd (Third Defendant) Representation: Counsel: S M Nixon SC with J J Hutton (Plaintiff) M A Jones SC with M F Newton (First Defendant) D L Williams SC with R D Glover (Third Defendant)