GLG Australia Pty. Ltd. v. The Nominal Defendant & Ors. (No.2) [2004] NSWCA 282

GLG Australia Pty. Ltd. v. The Nominal Defendant & Ors. (No.2) [2004] NSWCA 282

Statutory indemnity does not extend to insured's own legal costs, but due to Nominal Defendant's breach by incorrectly denying indemnity, it is appropriate to order the Nominal Defendant to pay costs incurred by GLG after denial, and to indemnify GLG for the sum paid plus interest.

Jurisdiction
Australia
Judgment Date
23 August 2004
Procedural Posture
Appeal / Judgment on Appeal and Orders
Outcome
Appeal allowed
Legal Topics
['motor Vehicle Accident' 'third Party Insurance' 'indemnity' 'interest and Costs']
['torts' 'insurance'] ['motor Vehicle Accident' 'third Party Insurance' 'indemnity' 'interest and Costs']

Case Brief

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Procedural Posture

Appeal / Judgment on Appeal and Orders

Legal Issues

  1. 1 ['Whether the statutory indemnity under the Motor Accidents Act 1988 covers costs incurred by an insured in defending a claim for damages' 'Whether GLG Australia Pty. Ltd. is entitled to interest on the sum paid to the plaintiff and reimbursement for its own costs of defending the District Court proceedings']

Ratio Decidendi

Statutory indemnity does not extend to insured's own legal costs, but due to Nominal Defendant's breach by incorrectly denying indemnity, it is appropriate to order the Nominal Defendant to pay costs incurred by GLG after denial, and to indemnify GLG for the sum paid plus interest.

Court Disposition

Appeal allowed

Orders

  • ['Appeal allowed' 'Verdict and judgment entered against the Appellant and the Third Respondent in the District Court be set aside' 'Verdict and judgment for the 2nd Respondent against the 3rd Respondent in the sum of $72,541.98' 'Verdict and judgment for the 2nd Respondent against the Appellant in the sum of...