Good Faith? Delays in approving insurance claims

In CGU Insurance Ltd v AMP Financial Planning Pty Ltd [2007] HCA 36, the High Court confirmed that time delays by insurers in indemnity decisions will be relevant to the court’s assessment of whether an insurer has complied with the duty of "utmost good faith" as required under section 13 of the Insurance Contracts Act 1984 (Cth).

Company directors exposed to security for costs orders

In Jianshe Southern Pty Ltd v Get Motor Cycles Pty Ltd (formerly Turnbull Cooktown Pty Ltd) (No.3) [2007] FCA 1078 it was confirmed that a court, in certain circumstances, can order a company director to provide a personal guarantee as security for the payment of any costs that the company is directed to pay.

Employers beware! Company policies may be contractually-enforced

In Goldman Sachs JBWere Services Pty Limited v Nikolich [2007] FCAFC 120, a decision of the Full Federal Court handed down on 7 August 2007, the Court upheld an earlier decision of Wilcox J, but effectively narrowed the circumstances in which an employer will be bound by statements in its policy documents.

Are liquidators constructive trustees?

The recent decision of the NSW Supreme Court in Wambo Coal Pty Ltd v Stuart Karim Ariff & 1 Or [2007] NSWSC 589 concerned monies paid under a mistake to a company in liquidation, and discussed the circumstances under which a liquidator will be considered a constructive trustee for the company in liquidation.

Legislation Updates