BNY Trust Company of Australia Limited v MMJ Real Estate (WA) Pty Ltd (No 2) [2018] NSWSC 1938

Supreme Court New South Wales

Medium Neutral Citation: BNY Trust Company of Australia Limited v MMJ Real Estate (WA) Pty Ltd (No 2) [2018] NSWSC 1938 Hearing dates: 16 November 2018 Date of orders: 14 December 2018 Decision date: 14 December 2018 Jurisdiction: Common Law Before: Schmidt J Decision: The separate questions must be answered in the way for which the defendants contend. The parties to file proposed orders within 7 days, reflecting the conclusions reached and as to costs.

If there is no agreement on these orders, parties will be heard. Catchwords: INSURANCE – professional indemnity insurance – construction of exclusion clause – where insurer denied indemnity to defendants – where prudent lender provision not inserted in valuation report – whether insurer only entitled to decline indemnity if the absence of the prudent lender clause caused the loss

PROCEDURE – separate determination of question Legislation Cited: Civil Procedure Act 2005 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Australian Casualty Co Ltd v Federico (1986) 160 CLR 513; [1986] HCA 32 Beefeater Sales International Pty Ltd v MIS Funding No 1 Pty Ltd [2016] NSWCA 217 BNY Trust Company of Australia Limited v MMJ Real Estate (WA) Pty Ltd [2018] NSWSC 1052 Codelfa Construction Pty Limited v State Rail Authority of NSW (1982) 149 CLR 337; [1982] HCA 24 Craine v Colonial Mutual Fire Insurance Co Ltd (1920) 28 CLR 305; [1920] HCA 64 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500; [1986] HCA 82 Distillers Co Bio-chemicals (Australia) Pty Ltd v Ajax Insurance Co Ltd (1974) 130 CLR 1; [1974] HCA 3 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579; [2000] HCA 65 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35 Public Transport Commission of New South Wales v J Murray-More (NSW) Pty Ltd (1975) 132 CLR 336; [1975] HCA 28 Category: Procedural and other rulings Parties: BNY Trust Company of Australia Limited (Plaintiff) MMJ Real Estate (WA) Pty Ltd (formerly DTZ (WA) Pty Ltd) (First Defendant/ Cross-Claimant) Dennis John Volk (Second Defendant/ Cross-Claimant) Brett Hosking (Third Defendant/ Cross-Claimant) XL Insurance Company SE (Cross-Defendant) Representation: Counsel: T Faulkner SC with L H Johnston (Plaintiff) G M Watson SC with K Petch (First, Second & Third Defendants/Cross-Claimants) S Donaldson SC with R Carey (Cross-Defendant)