In the matter of HIH Casualty & General Insurance Limited (in liquidation and subject to schemes of arrangement) [2013] NSWSC 2015

In the matter of HIH Casualty & General Insurance Limited (in liquidation and subject to schemes of arrangement) [2013] NSWSC 2015

It was just and equitable to make orders under Corporations Act 2001 (Cth) s 562A(4) in respect of the further reinsurance recoveries from Amlin 919 and B&ERG because the earlier findings about the structure of dealings, the matching of HIHCG's insurance with reinsurance, the substantive benefit of the arrangements to the James Hardie Group, the absence of substantive economic exposure by HIHCG, and the limited impact on other reinsurance creditors applied equally to the further recoveries.

Jurisdiction
Australia
Judgment Date
20 December 2013
Procedural Posture
Application for Orders Under Corporations Act 2001 (cth) S 562 A(4) Concerning Proceeds of Contracts of Reinsurance in Winding Up Proceedings / Interlocutory Applications; Ex Tempore Judgment
Outcome
Orders made under Corporations Act 2001 (Cth) s 562A(4).
Legal Topics
['winding Up' 'proceeds of Contract of Reinsurance' 'corporations Act 2001 (cth) S 562 A(4)' 'just and Equitable Orders']
['corporations' 'insolvency' 'insurance and Reinsurance'] ['winding Up' 'proceeds of Contract of Reinsurance' 'corporations Act 2001 (cth) S 562 A(4)' 'just and Equitable Orders']

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Procedural Posture

Application for Orders Under Corporations Act 2001 (cth) S 562 A(4) Concerning Proceeds of Contracts of Reinsurance in Winding Up Proceedings / Interlocutory Applications; Ex Tempore Judgment

Legal Issues

  1. 1 ['Whether it was just and equitable to make orders under Corporations Act 2001 (Cth) s 562A(4) so that ss 562A(2)-(3) would not apply to further reinsurance recoveries from Amlin 919 and B&ERG.' "Whether the reasoning in the Court's earlier judgment concerning the reinsurance arrangements between HIHCG, the James Hardie Group and reinsurers applied to the further recoveries now obtained."]

Ratio Decidendi

It was just and equitable to make orders under Corporations Act 2001 (Cth) s 562A(4) in respect of the further reinsurance recoveries from Amlin 919 and B&ERG because the earlier findings about the structure of dealings, the matching of HIHCG's insurance with reinsurance, the substantive benefit of the arrangements to the James Hardie Group, the absence of substantive economic exposure by HIHCG, and the limited impact on other reinsurance creditors applied equally to the further recoveries.

Court Disposition

Orders made under Corporations Act 2001 (Cth) s 562A(4).

Orders

  • ['Orders made in accordance with the short minutes of order initialled by Black J and placed in the file.' 'Orders under Corporations Act 2001 (Cth) s 562A(4) in respect of the further reinsurance recoveries from Amlin 919 and B&ERG.']