Global Constructions Australia Pty Ltd (in liq) v AIG Australia Limited (No 3) [2018] FCA 432

Global Constructions Australia Pty Ltd (in liq) v AIG Australia Limited (No 3) [2018] FCA 432

A claim under cover 1 of Section 4 of the policy, where the relevant person is both an Employee and a Shareholder, is subject to the set-off under cover 6. The set-off must be made against direct financial loss before the application of any policy limit.

Jurisdiction
Australia
Judgment Date
28 March 2018
Procedural Posture
Insurance Dispute / Post Hearing, Determination of Separate Questions and Case Management Orders
Outcome
Separate questions answered; costs awarded to applicant; further procedural orders concerning subpoenas, affidavit, transfer, and case management.
Legal Topics
['insurance Policy Interpretation' 'set Off Under Insurance Policies' 'case Management Procedure']
['insurance Law' 'commercial Law'] ['insurance Policy Interpretation' 'set Off Under Insurance Policies' 'case Management Procedure']

Case Brief

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Procedural Posture

Insurance Dispute / Post Hearing, Determination of Separate Questions and Case Management Orders

Legal Issues

  1. 1 ['Whether a claim under cover 1 of Section 4 of the policy is subject to set-off for which cover 6 of Section 4 provides when the person involved is both an Employee and a Shareholder' 'At what stage the set-off is to be applied under Section 4 of the policy' 'How costs and further procedural steps should be resolved']

Ratio Decidendi

A claim under cover 1 of Section 4 of the policy, where the relevant person is both an Employee and a Shareholder, is subject to the set-off under cover 6. The set-off must be made against direct financial loss before the application of any policy limit.

Court Disposition

Separate questions answered; costs awarded to applicant; further procedural orders concerning subpoenas, affidavit, transfer, and case management.

Orders

  • ['The separate questions relating to set-off under the policy answered as set out in the orders.' "Respondent to pay the applicant's costs of the hearing of the separate questions in the sum of $25,000." 'Leave granted to the respondent to issue subpoenas to named accounting firms.' "Leave granted to file the...