Sandstrom v FSS Trustee Corporation & Anor [2020] NSWSC 200

Supreme Court New South Wales

Medium Neutral Citation: Sandstrom v FSS Trustee Corporation & Anor [2020] NSWSC 200 Hearing dates: 16, 17, 18, 19, 20 & 23 April, 16 May, 8 October and 8 November 2018 Date of orders: 09 March 2020 Decision date: 09 March 2020 Jurisdiction: Equity Before: Slattery J Decision: The second defendant's decision of 24 July 2015 to decline the plaintiff's claim is set aside. The Court reassesses the plaintiff's claim as at the date of assessment and finds she satisfies the TPD definition within the policies. Orders made for payment of the sums agreed under each policy. Directions made for the calculation of interest and for any argument in relation to costs. Catchwords: INSURANCE – General – total and permanent disablement – plaintiff a police officer – plaintiff discharged from police force in July 2011 – plaintiff a member of police superannuation fund – first defendant is a trustee of the fund – first defendant takes out two policies of insurance for the benefit of members of the fund with the second defendant insurer – plaintiff claims she is totally and permanently disabled ("TPD") after being off work for six months and entitled to a benefit for the same – the first and second defendants decline the plaintiff's claim in July 2015 – plaintiff discontinues proceedings against first defendant – whether the second defendant insurer acted with the utmost good faith in dealing with the plaintiff's claim and acted reasonably in forming an opinion as to whether the plaintiff qualified as TPD under the policies – whether the second defendant's decision can be set aside – whether the Court should now itself determine whether the plaintiff is TPD under the policies – whether the plaintiff was "unlikely ever to be able to engage in or work for reward in any occupation or work for which… she is reasonably qualified by education training or experience". Legislation Cited: Crown Employees (Police Officers Death and Disability) Award 2005 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] NSWLR 412 CGU Insurance Ltd v AMP Financial Planning Pty Ltd (2007) 235 CLR 1 Chammas v Harwood Nominees (1993) 7 ANZ Ins Cas 61-175 Edwards v Hunter Valley Co-op Dairy Co Ltd (1992) 7 ANZ Ins Cas 61-113 Erzurumlu v Kellogg Superannuation Pty Ltd [2013] NSWSC 1115 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 Jones [2017] 19 ANZ Ins Cas 62-149 Hannover Life Re of Australasia Ltd v Sayseng [2005] 13 ANZ Ins Cas 90-123 Hannover Life Re of Australasia Ltd v Dargan (2013) 83 NSWLR 246 Hellessey v MetLife Insurance Ltd [2017] NSWSC 1284 Jones v United Super Pty Ltd [2016] ANZ Ins Cas 62-126 Lazarevic v United Super Pty Ltd [2014] 18 ANZ Ins Cas 62-039 McArthur v Mercantile Mutual Life Insurance [2002] 2 Qd R 197 MetLife Insurance Ltd v Hellessey [2018] NSWCA 307 MetLife Insurance Ltd v MX [2019] NSWCA 228 Newling v FSS Trustee Corporation (No 2) [2018] NSWSC 1405 Savelberg v United Super Pty Ltd [2011] NSWSC 1482 TAL Life Ltd v Shuetrim; MetLife Insurance Ltd v Shuetrim [2016] 332 ALR 507 Wardley Australia Limited v the State of Western Australia (1992) 175 CLR 514 Weber v Tiss Pty Ltd [2005] NSWSC 67 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: JD Heydon, MJ Leeming and PG Turner, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th ed, 2014, LexisNexis Butterworths) Enright and Merkin, Sutton on Insurance Law, 4th ed, Thomson Reuters, 2014, Volume 2 Category: Principal judgment Parties: Plaintiff: Rebecca Sandstrom First Defendant: FSS Trustee Corporation ACN 118202672 Second Defendant: Metlife Insurance Limited Representation: Counsel: Plaintiff: D. E. Baran; M. B. Eirth Second Defendant: G.M. Watson SC; C. Purdy