(re Vasiliou) Chubb Australia Limited v Mercantile Mutual Insurance (Australia) Ltd & Ors [2007] NSWDDT 20

(re Vasiliou) Chubb Australia Limited v Mercantile Mutual Insurance (Australia) Ltd & Ors [2007] NSWDDT 20

Chubb was not guilty of conduct disentitling it from the general rule that costs follow the event, and is entitled to its costs against Mercantile on an indemnity basis. The joining of all relative insurers was reasonable, and Sanderson orders should be made to streamline recovery of costs. Insurers who were successful should have costs against Chubb, which Chubb may pass to Mercantile. Indemnity costs and interest on costs are allowed as reasoned.

Parties
Cross Claimant: Chubb Australia Limited; First Cross Defendant: Mercantile Mutual Insurance (Australia) Limited; Third Cross Defendant: Government Insurance Office of New South Wales; Second Cross Defendant: AMP General Insurance Limited; Fifth Cross Defendant: Insurers Guarantee Fund - NEM General Insurance Association Limited (in liquidation); Fourth Cross Defendant: MMI Insurance Limited; Sixth Cross Defendant: Mercantile Mutual Insurance (NSW) Workers Compensation Limited
Jurisdiction
Australia
Judgment Date
11 May 2007
Procedural Posture
Cross Claim for Indemnity and Costs Between Insurers / Post Substantive Judgment: Determination of Costs Orders
Outcome
Chubb entitled to costs against Mercantile Mutual Insurance (NSW) Workers Compensation Limited on an indemnity basis; costs orders to be reflected in short minutes of order. Successful insurers to have costs against Chubb, which may pass costs to Mercantile. Interest to be included from date costs paid for each...
Legal Topics
Costs, Indemnity, Cross Claims, Dust Disease Claims
Insurance Law Civil Procedure Costs Indemnity Cross Claims Dust Disease Claims

Case Brief

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Parties

Chubb Australia Limited

Cross Claimant

Mercantile Mutual Insurance (Australia) Limited

First Cross Defendant

Government Insurance Office of New South Wales

Third Cross Defendant

AMP General Insurance Limited

Second Cross Defendant

Insurers Guarantee Fund - NEM General Insurance Association Limited (in liquidation)

Fifth Cross Defendant

MMI Insurance Limited

Fourth Cross Defendant

Mercantile Mutual Insurance (NSW) Workers Compensation Limited

Sixth Cross Defendant

Procedural Posture

Cross Claim for Indemnity and Costs Between Insurers / Post Substantive Judgment: Determination of Costs Orders

Legal Issues

  1. 1 whether the general rule that costs follow the event should apply
  2. 2 whether conduct of Chubb disentitled it to costs against Mercantile
  3. 3 basis for awarding costs between Chubb and other insurers

Ratio Decidendi

Chubb was not guilty of conduct disentitling it from the general rule that costs follow the event, and is entitled to its costs against Mercantile on an indemnity basis. The joining of all relative insurers was reasonable, and Sanderson orders should be made to streamline recovery of costs. Insurers who were successful should have costs against Chubb, which Chubb may pass to Mercantile. Indemnity costs and interest on costs are allowed as reasoned.

Court Disposition

Chubb entitled to costs against Mercantile Mutual Insurance (NSW) Workers Compensation Limited on an indemnity basis; costs orders to be reflected in short minutes of order. Successful insurers to have costs against Chubb, which may pass costs to Mercantile. Interest to be included from date costs paid for each...

Orders

  • Chubb to have indemnity costs against Mercantile Mutual Insurance (NSW) Workers Compensation Limited.
  • Successful insurers (other than Mercantile Mutual Insurance) to have costs against Chubb; Chubb may pass those costs to Mercantile.