Wilkie v Gordian Runoff & Anor [2005] NSWSC 873

Wilkie v Gordian Runoff & Anor [2005] NSWSC 873

It was reasonable for Mr Wilkie to agree to pay cancellation fees and to advance those fees to counsel, but the reasonableness of the amount (quantum) of such fees, being in dispute, requires referral to expert assessment rather than outright grant or denial of the amounts claimed.

Jurisdiction
Australia
Judgment Date
31 August 2005
Procedural Posture
Insurance Dispute / Post High Court, Motion for Payment of Defence and Cancellation Fees
Outcome
Declaration made of entitlement to advancement of defence costs; application for immediate quantified relief on cancellation fees referred to expert assessment under UCPR 20.14.
Legal Topics
["directors' and Officers' Liability Insurance" 'defence Costs' 'payment of Costs' 'cancellation Fees' 'reasonableness of Advance Payments' 'referral to Costs Assessment']
['insurance Law' 'civil Procedure'] ["directors' and Officers' Liability Insurance" 'defence Costs' 'payment of Costs' 'cancellation Fees' 'reasonableness of Advance Payments' 'referral to Costs Assessment']

Case Brief

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Procedural Posture

Insurance Dispute / Post High Court, Motion for Payment of Defence and Cancellation Fees

Legal Issues

  1. 1 ["Whether the insurer's obligation to pay defence costs requires payment within a reasonable time." 'Whether it was reasonable for the insured to agree to pay cancellation fees in advance to counsel for defence of criminal proceedings.' 'Whether the amount of the cancellation fees agreed was reasonable.']

Ratio Decidendi

It was reasonable for Mr Wilkie to agree to pay cancellation fees and to advance those fees to counsel, but the reasonableness of the amount (quantum) of such fees, being in dispute, requires referral to expert assessment rather than outright grant or denial of the amounts claimed.

Court Disposition

Declaration made of entitlement to advancement of defence costs; application for immediate quantified relief on cancellation fees referred to expert assessment under UCPR 20.14.

Orders

  • ['Declaration of entitlement to advancement of defence costs substantially in terms of cl 9 of the policy.' 'Reasonableness of the amount of cancellation fees to be referred to expert for assessment under UCPR 20.14.' 'Orders as agreed by the parties to give effect to these conclusions.']