In the matter of HIH Casualty & General Insurance Ltd (in liquidation and subject to schemes of arrangement) [2014] NSWSC 1741

In the matter of HIH Casualty & General Insurance Ltd (in liquidation and subject to schemes of arrangement) [2014] NSWSC 1741

It is just and equitable to allocate the specified reinsurance receipts, after deducting 2.5% expenses, directly to the First Plaintiff, as the proceeds relate to policies procured by the insureds, the insureds would be severely prejudiced if distributed otherwise, and the position aligns with previous judicial reasoning for similar policy years and arrangements.

Jurisdiction
Australia
Judgment Date
04 December 2014
Procedural Posture
Interlocutory Application / Order on Agreed Application, in Chambers
Outcome
Orders made as sought under s 562A(4) of the Corporations Act; no order as to costs.
Legal Topics
['winding Up' 'schemes of Arrangement' 'reinsurance Proceeds' 'distribution to Insured Creditors']
['corporations Law' 'insolvency'] ['winding Up' 'schemes of Arrangement' 'reinsurance Proceeds' 'distribution to Insured Creditors']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Interlocutory Application / Order on Agreed Application, in Chambers

Legal Issues

  1. 1 ['Whether it is just and equitable to make orders under s 562A(4) of the Corporations Act for allocation of reinsurance proceeds' 'Whether subsections 562A(2) and (3) should be displaced in favour of a different distribution']

Ratio Decidendi

It is just and equitable to allocate the specified reinsurance receipts, after deducting 2.5% expenses, directly to the First Plaintiff, as the proceeds relate to policies procured by the insureds, the insureds would be severely prejudiced if distributed otherwise, and the position aligns with previous judicial reasoning for similar policy years and arrangements.

Court Disposition

Orders made as sought under s 562A(4) of the Corporations Act; no order as to costs.

Orders

  • ['Subsections 562A(2) and (3) of the Corporations Act 2001 (Cth) do not apply to $850,237 received from Portman Insurance Ltd and $285,035 received from AXA Insurance UK; proceeds to be applied after deducting 2.5% expenses; balance of $1,106,890.20 (less any dividends/distributions already paid) to be paid to the...