Bazem Pty v Bureau of Urban Architecture; Bureau of Urban Architecture v Bazem [2010] NSWSC 978

Bazem Pty v Bureau of Urban Architecture; Bureau of Urban Architecture v Bazem [2010] NSWSC 978

There was sufficient commonality for joinder under Uniform Civil Procedure Rules 2005, Pt 6 r 6.19 because both Bazem's proposed misrepresentation claim and CGU's indemnity defence concerned the alleged failure to disclose Mr Huxley's personal insolvency agreement and its consequences for Bureau's ability to provide architectural services. The claim for declaratory relief against CGU involved a true controversy with practical utility and should be resolved in the same proceedings. Bazem also gave a sufficient explanation for the timing of its applications because CGU's full reasons for declining indemnity were not apparent until service of its draft defence. The discretion to grant leave...

Jurisdiction
Australia
Judgment Date
02 September 2010
Procedural Posture
Applications for Leave to Amend Pleadings and Join an Insurer as a Party / Interlocutory Applications; Reasons Delivered After Both Applications Were Granted
Outcome
Applications granted.
Legal Topics
['joinder of Parties' 'amendment of Pleadings' 'declaratory Relief Against Insurer' 'professional Indemnity Insurance' 'fraudulent Non Disclosure or Misrepresentation' 'delay in Seeking Leave to Amend']
['civil Procedure' 'insurance Law' 'trade Practices' 'professional Regulation'] ['joinder of Parties' 'amendment of Pleadings' 'declaratory Relief Against Insurer' 'professional Indemnity Insurance' 'fraudulent Non Disclosure or Misrepresentation' 'delay in Seeking Leave to Amend']

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Procedural Posture

Applications for Leave to Amend Pleadings and Join an Insurer as a Party / Interlocutory Applications; Reasons Delivered After Both Applications Were Granted

Legal Issues

  1. 1 ['Whether Bazem should have leave to file an amended statement of claim joining CGU Insurance Limited as second defendant and seeking a declaration that CGU was obliged to indemnify Bureau of Urban Architecture Pty Limited.' "Whether Bazem should have leave in the related proceeding to amend its defence to include allegations from CGU's draft defence concerning fraudulent non-disclosure or misrepresentation by Bureau." 'Whether there was sufficient commonality of law or fact for joinder under Uniform Civil Procedure Rules 2005, Pt 6 r 6.19.' 'Whether the discretion to grant leave should be exercised despite the late stage of the applications.']

Ratio Decidendi

There was sufficient commonality for joinder under Uniform Civil Procedure Rules 2005, Pt 6 r 6.19 because both Bazem's proposed misrepresentation claim and CGU's indemnity defence concerned the alleged failure to disclose Mr Huxley's personal insolvency agreement and its consequences for Bureau's ability to provide architectural services. The claim for declaratory relief against CGU involved a true controversy with practical utility and should be resolved in the same proceedings. Bazem also gave a sufficient explanation for the timing of its applications because CGU's full reasons for declining indemnity were not apparent until service of its draft defence. The discretion to grant leave...

Court Disposition

Applications granted.

Orders

  • ['Bazem was granted leave in proceedings 2009/287392 to file an amended statement of claim joining CGU Insurance Limited as second defendant and seeking declaratory relief against it.' "Bazem was granted leave in proceedings 2009/289283 to amend its defence to include allegations based on CGU's draft defence."]