Muriniti; Newell v Lawcover Insurance Pty Ltd (No 2) [2018] NSWCA 311

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Muriniti; Newell v Lawcover Insurance Pty Ltd (No 2) [2018] NSWCA 311 Hearing dates: 19 June 2018 Decision date: 14 December 2018 Before: Bathurst CJ; Beazley P; White JA Decision: Appeal dismissed with costs. Catchwords: CONTRACTS – construction – policy of professional indemnity insurance – whether on the proper construction of the policy the appellants were deemed to have consented to Lawcover's decision not to appeal the decision in Young v King (No 11) – whether on the proper construction of the policy the appellants were entitled to bring an appeal in their own names

CONTRACTS – construction – good faith – whether Lawcover acted in bad faith in defending the proceeding subject of Young v King (No 11) - whether Lawcover acted in bad faith in refusing to appeal from the decision in Young v King (No 11)

INSURANCE – Insurance Contracts Act 1984 (Cth) – duty of good faith – whether clauses in professional indemnity insurance policy contravened Insurance Contracts Act 1984 (Cth), s 52 – whether the policy offended the good faith provisions of the Insurance Contracts Act 1984 (Cth)

APPEALS – failure to give reasons – whether the primary judge failed to give adequate reasons for his conclusion that Lawcover had not failed to act in good faith

APPEALS – apprehended bias – whether the reasons of the primary judge supported a reasonable apprehension of bias Legislation Cited: Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW), s 4 Civil Procedure Act 2005 (NSW), ss 98, 99 Evidence Act 1995 (NSW), s 91 Insurance Contracts Act 1984 (Cth), ss 13, 14, 52 Legal Profession Uniform Law Application Act 2014 (NSW), Sch 2, cl 5 Supreme Court Act 1970 (NSW), s 75A(10) Uniform Civil Procedure Rules 2005 (NSW), r 51 Cases Cited: Akai Pty Ltd v People's Insurance Co Ltd (1996) 188 CLR 418; [1996] HCA 39 Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99; [1973] HCA 36 Beale v Government Insurance Office of New South Wales (1997) 48 NSWLR 430 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Brimaud v Honeysett Instant Print Pty Ltd (1988) 217 ALR 44 Dalgety Wine Estates Pty Ltd v Rizzon (1979) 141 CLR 552; [1979] HCA 41 Ebner v Official Trustee in Bankruptcy (2000) 205 CLR 337; [2000] HCA 63 Flinn v Flinn (1999) 3 VR 712; [1999] VSCA 109 Gan Insurance Co v Tai Ping Insurance Co Ltd (No 2) [2001] EWCA Civ 1047; [2001] 2 All ER (Comm) 299 Hancock Family Memorial Foundation Ltd v Lowe (2015) 320 ALR 337; [2015] WASCA 38 King v Muriniti (2018) 359 ALR 291; [2018] NSWCA 98 Lemoto v Able Technical Pty Ltd (2005) 63 NSWLR 300; [2005] NSWCA 153 Logwon Pty Ltd v Warringah Shire Council (1993) 33 NSWLR 13 Maggbury Pty Ltd v Hafele Aust Pty Ltd (2001) 210 CLR 181; [2001] HCA 70 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579; [2000] HCA 65 Michael Wilson & Partners v Nicholls (2011) 244 CLR 427; [2011] HCA 48 Newell; Muriniti v De Costi [2018] NSWCA 49 Orleans Investments Pty Ltd v MindShare Communications Ltd (2009) 254 ALR 81; [2009] NSWCA 40 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589; [1981] HCA 45 Rainy Sky SA v Kookmin Bank [2011] 1 WLR 2900; [2011] UKSC 50 Rippon v Chilcotin Pty Ltd (2001) 53 NSWLR 198; [2001] NSWCA 142 Romeo v Papalia [2012] NSWCA 221 Royal Guardian Mortgage Management Pty Ltd v Nguyen (2016) 332 ALR 128; [2016] NSWCA 88 Spies v Commonwealth Bank of Australia (1991) 24 NSWLR 691 Symphony Group plc v Hodgson [1994] QB 179 at 193 TAL Life Ltd v Shuetrim; Metlife Insurance Ltd v Shuetrim (2016) 91 NSWLR 439; [2016] NSWCA 68 West Wake Price & Co v Ching [1957] 1 WLR 45 Wilkie v Gordian Runoff (2005) 221 CLR 522; [2005] HCA 17 Young v King (No 11) [2017] NSWLEC 34 Young v King (No 4) [2012] NSWLEC 236 Young v King (No 6) [2015] NSWLEC 111 Young v King (No 7) [2015] NSWLEC 178 Young v King (No 8) [2015] NSWLEC 187 Young v King (No 9) [2016] NSWLEC 4 Young v King [2016] NSWCA 282 Zhang v ROC Services (NSW) Pty Ltd; National Transport Insurance by its manager NTI Ltd v Zhang (2016) 93 NSWLR 561; [2016] NSWCA 370 Category: Principal judgment Parties: Leonardo Carlo Muriniti (First Appellant) Robert Duane Newell (Second Appellant) Lawcover Insurance Pty Ltd (Respondent) Representation: Counsel: R Newell (Appellants) G Rich SC; A Zahra (Respondent)