Insurance, Banking, Construction & Government Friday, 27 March 2015 View in browser

A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.
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Insurance, Banking, Construction & Government

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CIVIL (Insurance, Banking, Construction & Government)
Executive Summary (One Minute Read)
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 (I B G)
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 (I)
Douglas v James (NSWSC) - wills and estates - appointer for capital protected trust did not have power to remove and appoint trustees (B)
Smythe v Burgman (No 2) (NSWSC) - medical negligence - patient’s leg amputated due to arterial clot - doctor not liable (I)
A v C (SASC) - judicial review - preliminary issue - meaning of contractor and public officer under Independent Commissioner Against Corruption Act 2012 (SA) (B G)
Commissioner of Highways v M & B Farmer Nominees Pty Ltd; Commissioner of Highways v Farmer No 2 Pty Ltd (SASC) - compulsory acquisition of land - companies entitled to interest on difference between total compensation and amount paid into Court (B C G)
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 (I)
Summaries With Link (Five Minute Read)
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 (I B G)
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 (I)
Douglas v James [2015] NSWSC 299
Supreme Court of New South Wales
McDougall J
Wills and estates - proceedings concerning complex testamentary trusts created by deceased’s Will -  whether first defendant as “Appointor” for “Capital Protected Trust” (CPT) had power to remove and appoint trustees of CPT - construction of Will -  held: first defendant did not have power to remove plaintiffs as trustees and appoint others in their place - rectification of Will refused - plaintiffs entitled to declaratory relief sought - cross-summons failed.
Douglas (B)
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 (I)
A v C [2015] SASC 35
Supreme Court of South Australia
Blue J
Judicial review - contract - A and B sought relief in relation to investigation by Independent Commissioner Against Corruption under Independent Commissioner Against Corruption Act 2012 (SA) - preliminary issue - whether A was public officer performing work as contractor for public authority or Crown under the Act - held: A entered into contract Crown governing A’s appointment as Board member - contract renewed or extended thereafter counterparty to contract was Crown - contractor extended to person who performed work as member of government board pursuant to contract with Crown - A was contractor and thereby public officer within meaning of Act.
AvC (B G)
Commissioner of Highways v M & B Farmer Nominees Pty Ltd; Commissioner of Highways v Farmer No 2 Pty Ltd [2015] SASC 40
Supreme Court of South Australia
Blue J
Real property - compulsory acquisition of land - Commissioner of Highways compulsorily acquired land from companies - Commissioner offered compensation and paid sum into Court - parties agreed companies entitled to compensation in greater sum and transfer of surplus land - parties disagreed whether companies entitled to interest on the difference between total compensation and amount paid into Court - s33 Land Acquisition Act 1969 (SA) - held: on proper construction, interest was payable under s33 on difference between total compensation, whether in form cash or otherwise, and amount paid into Court.
Commissioner (B C G)
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 (I)
CRIMINAL
Executive Summary
R v Kelsall (No 3) (NSWSC) - criminal law - evidence - statements to doctors which amounted to protected confidences admissible
Summaries With Link
R v Kelsall (No 3) [2015] NSWSC 253
Supreme Court of New South Wales
R A Hulme J
Criminal law - admissibility of evidence of protected confidences - accused pleaded not guilty to two counts on indictment alleging indecent assault and murder- admissibility of statements made by accused to two doctors in mid 2012 - statements were protected confidences under Ch 3 Pt 3.10 Div 1A Evidence Act 1995 (NSW) - Court required to exclude evidence if satisfied of matters in ss126B(3) & 126B(4) - held: probative value of evidence high - no violation of therapeutic relationship as accused had no ongoing relationship with doctors - evidence was of type doctors would consider being outside scope of what was required to be kept confidential, a matter about which patients usually informed - evidence of disclosures admissible.
RvKelsall
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