Insurance Friday, 27 March 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)
Insurance Australia Ltd v Albrecht (ACTSC) - costs - motor vehicle accident - s155(3)(c) Road Transport (Third Party Insurance) Act 2008 (ACT) applied to assessment of costs referred to in consent judgment - declaration
Donoghue v Commissioner of Taxation (FCA) - income tax - assessments made with benefit of material provided by third party without permission - material subject to legal professional privilege - assessments quashed
Thompson t/as Staunton and Thompson Lawyers v Schacht (No 2) (NSWCA) - professional negligence - solicitors’ duties - application to re-open judgment granted - credit allowed to damages otherwise calculated
Smythe v Burgman (No 2) (NSWSC) - medical negligence - patient’s leg amputated due to arterial clot - doctor not liable
Summaries With Link (Five Minute Read)
Insurance Australia Ltd v Albrecht [2015] ACTSC 68
Supreme Court of the Australian Capital Territory
Mossop M
Costs - first plaintiff was compulsory third-party insurer of second plaintiff - defendant and second plaintiff involved in motor vehicle accident - insurer admitted breach of duty of care by second plaintiff - plaintiffs sought declaration s155(3)(c) Road Transport (Third Party Insurance) Act 2008 (ACT) applied to assessment of costs referred to in consent judgment - whether defendant’s entitlement to costs limited by s155(3)(c) - statutory interpretation - held: reference to awards not confined to judgments entered after hearing, and included consent judgments - declaration that s155(3)(c) applied - orders for payment of costs in accordance with s155(3)(c)(i)-(ii).
Insurance
Donoghue v Commissioner of Taxation [2015] FCA 235
Federal Court of Australia
Logan J
Income tax - legal professional privilege - applicant sought orders that assessments, which exposed him to multi-million dollar liability to Commonwealth, were invalid - audit and assessments made with benefit of material concerning applicant and other entities provided by third party without permission - held: third party working to or for legal firm with which applicant had retainer - material concerned subject to legal professional privilege - Commissioner had no right under ss166 or 263 Income Tax Assessment Act 1936 (Cth) to use material subject to legal professional privilege - auditor acted in wilful disregard of applicant’s right to claim legal professional privilege in respect of material - Commissioner’s process of assessment affected by conscious maladministration - assessments quashed.
Donaghue
Thompson t/as Staunton and Thompson Lawyers v Schacht (No 2) [2015] NSWCA 70
Court of Appeal of New South Wales
Basten, Barrett & Leeming JJA
Judgments and orders - solicitors’ duties - professional negligence - Court allowed solicitors’ appeal against assessment of damages - damages reduced including allowance for spousal maintenance - solicitors sought to re-open judgment in relation to allowance for spousal maintenance - solicitors claimed respondent did not merely suffer no loss but obtained benefit - solicitors claimed benefit should have been applied by reduction of damages - held: absent prejudice Court should reopen judgment if satisfied issue clearly articulated for Court’s consideration - there was live issue for Court’s consideration - principal judgment simply removed amount for spousal maintenance from award - no credit given for benefit to respondent - Court’s findings resulted in contradiction between rejecting head of damages and not acceding to submissions for credit - application granted - credit allowed to damages otherwise calculated.
Thompson
Smythe v Burgman (No 2) [2015] NSWSC 298
Supreme Court of New South Wales
Adamson J
Medical negligence - plaintiff claimed damages from doctor for leg amputation - plaintiff claimed doctor negligent in failing to diagnose arterial ischaemia on either of two dates - ss5D(1), 5E, 5O, 15B(2)(c) & 16 Civil Liability Act 2002 (NSW) - s 69(4) Evidence Act 1995 (NSW) - credit - usual practice - held: plaintiff failed to establish breach of duty by doctor - Court satisfied doctor considered arterial ischaemia and reasonably rejected it - even if doctor negligent, Court not satisfied negligence would have caused or contributed to loss of leg - judgment for defendant.
Smythe
Old Wine
by Margaret Widdemer
 
If I could lift
    My heart but high enough
    My heart could fill with love:
 
But ah, my heart
    Too still and heavy stays
    Too brimming with old days.
 
Margaret Widdemer