Insurance Friday, 10 April 2015 View in browser

A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.
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Executive Summary (One Minute Read)
Coles Supermarkets Australia Pty Ltd v Fardous (NSWCA) - negligence - slip and fall at supermarket - erroneous assessment of damages for economic loss - appeal allowed
Hou v Westpac Banking Corporation Ltd (VSCA) - mortgage recovery - summary judgment in favour of bank - leave to appeal refused
Hamcor Pty Ltd v State of Qld (No 2) (QSC) - costs - unreasonable rejection of Calderbank offer - indemnity costs awarded
Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher & Barnet (NSWCA) - corporations - standing - appeal against approval of entry into funding agreement allowed
Workplace Safety Australia v Simple OHS Solutions Pty Ltd (NSWCA) - trade practices - contract - equity - franchise agreement entered in contravention of Competition and Consumer Act 2010 - damages
Summaries With Link (Five Minute Read)
Coles Supermarkets Australia Pty Ltd v Fardous [2015] NSWCA 82
Court of Appeal of New South Wales
Macfarlan & Emmett JJA; Simpson J
Negligence - occupier’s liability - respondent injured in slip and fall at appellant’s supermarket - primary judge found in respondent’s favour against appellant on liability and awarded damages - appellant challenged awards for past economic loss, future economic loss and future out-of-pocket expenses - whether respondent had any earning capacity at time of accident taking into account earlier work accident - s13 Civil Liability Act 2002 (NSW) - held: primary judge erred in assessment of damages for economic loss - respondent had significant prospect assessed at 65% of obtaining employment of 20 hours per week at rate of $20 per hour - primary judge’s award of damages for past and future economic loss reduced to reflect percentage - no error in assessment of damages for future out-of-pocket expenses - appeal allowed.
Coles
Hou v Westpac Banking Corporation Ltd [2015] VSCA 57
Court of Appeal of Victoria
Whelan & Beach JJA
Summary judgment - mortgage - bank issued proceeding against applicant and proceeding against applicant and partner - Associate Justice gave judgment in favour of bank on summary judgment applications - Chief Justice dismissed appeals - applicants sought extensions of time to seek leave to appeal, stay of orders made against them and leave to appeal from orders made by Chief Justice - r77.06.9 Supreme Court (General Civil Procedure) Rules 2005 (Vic) - held: no basis for conclusion that applicants real prospect of success - leave to appeal on each application refused - even if Court had granted leave to appeal, Court would have dismissed each appeal.
Hou
Hamcor Pty Ltd v State of Qld (No 2) [2015] QSC 69
Supreme Court of Queensland
Dalton J
Indemnity costs - Calderbank offer - second and third defendants were plaintiffs’ insurance brokers - insurance brokers wholly successful against plaintiffs at trial - insurance brokers sought costs of proceedings - uncontroversial that insurance brokers should have costs - whether part of costs should be paid on an indemnity basis - held: plaintiffs had no worthwhile prospects of success - plaintiffs’ refusal to accept Calderbank offer was unreasonable - insurance brokers to have costs on indemnity basis from date of expiry of Calderbank letter.
Hamcor
Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher & Barnet [2015] NSWCA 85
Court of Appeal of New South Wales
Bathurst CJ; Beazley, Macfarlan, Meagher & Barrett JJA
Corporations - standing - second respondent company (OA) and its ultimate holding company (OL) commenced separate proceedings against Fortress - OA and OL alleged certain transactions entered into by Fortress were voidable - liquidators of OA and OL sought to enter into funding agreement that provided for OA to fund OL’s proceedings - primary judge concluded Fortress had no relevant right to be heard on application and approved entry into funding agreement - held: Fortress was person aggrieved or sufficiently interested in proceedings because it had interest in any debt due by OA to OL, and funding agreement had potential to diminish value of OL’s debt to Fortress - primary judge failed to analyse extent to which OA and OL could succeed in claims and potential practical benefit to OA in entering into agreement - primary judge’s discretion miscarried in approving entry into funding agreement - appeal allowed - matter remitted.
Fortress
Workplace Safety Australia v Simple OHS Solutions Pty Ltd [2015] NSWCA 84
Court of Appeal of New South Wales
Bathurst CJ; Basten & Emmett JJA
Trade practices - contract - equity - estoppel - distribution agreement between Workplace Safety Australia Pty Ltd (WSA), Simply OHS Solutions Pty Ltd (Simple) and guarantor - under agreement Simple agreed to distribute WSA’s online subscription packages - WSA purported to terminate agreement for alleged breaches by Simple - WSA sued Simple and guarantor for money owing under agreement and damages for loss of further profits - Simple cross-claimed for damages for wrongful repudiation and on basis WSA contravened s51AD Competition and Consumer Act 2010 (Cth) in entering agreement - common ground that Trade Practices (Industry Codes – Franchising) Regulations 1998 (Cth) contravened if agreement was franchising agreement - held: primary judge did not err in concluding agreement was a franchise agreement within meaning of Code - WSA not entitled to terminate agreement on basis of Simple’s failure to pay instalment or meet sales target - no error in assessment of damages under s82 - appeal dismissed.
Workplace
A Gift
by Leonora Speyer
 
I Woke: —
Night, lingering, poured upon the world
Of drowsy hill and wood and lake
Her moon-song,
And the breeze accompanied with hushed fingers
On the birches.
 
Gently the dawn held out to me
A golden handful of bird’s-notes.
 
LeonoraSpeyer