ZHANG & ANOR v MINOX SECURITIES PTY LTD & ORS; LIU & ORS v MINOX SECURITIES PTY LTD & ORS [2009] NSWCA 182

ZHANG & ANOR v MINOX SECURITIES PTY LTD & ORS; LIU & ORS v MINOX SECURITIES PTY LTD & ORS [2009] NSWCA 182

The relevant exclusion clause in the Professional Indemnity Policy does not apply to claims against Quantum, as Quantum did not issue a proper authority to itself; accordingly, leave to commence proceedings against QBE Insurance (Australia) Ltd in respect of the Professional Indemnity Policy is granted. Claims based on financial planning advice are excluded from the Financial Institutions Policy; therefore, leave to pursue claims under that policy is refused.

Jurisdiction
Australia
Judgment Date
07 July 2009
Procedural Posture
Appeal / Decision After Leave to Appeal
Outcome
Appeal allowed in part
Legal Topics
['liability Insurance' 'vicarious Liability' 'construction of Exclusion Clause' 'innocent Employer' 'leave to Commence Proceedings Against Insurer']
['insurance Law' 'corporations Law'] ['liability Insurance' 'vicarious Liability' 'construction of Exclusion Clause' 'innocent Employer' 'leave to Commence Proceedings Against Insurer']

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Procedural Posture

Appeal / Decision After Leave to Appeal

Legal Issues

  1. 1 ['Whether exclusion clause in Professional Indemnity Policy denies indemnity to employer for adviser’s unauthorised acts' 'Whether claimants should have leave to commence proceedings against insurer under Law Reform (Miscellaneous Provisions) Act 1946' 'Whether Financial Institutions Policy covers claims based on financial advice']

Ratio Decidendi

The relevant exclusion clause in the Professional Indemnity Policy does not apply to claims against Quantum, as Quantum did not issue a proper authority to itself; accordingly, leave to commence proceedings against QBE Insurance (Australia) Ltd in respect of the Professional Indemnity Policy is granted. Claims based on financial planning advice are excluded from the Financial Institutions Policy; therefore, leave to pursue claims under that policy is refused.

Court Disposition

Appeal allowed in part

Orders

  • ['Leave to appeal granted' 'Claimants to file and serve notice of appeal within 10 days; further compliance with rules dispensed with' 'Orders one and two in the Equity Division set aside' 'Leave granted to appellants to commence proceedings against QBE Insurance (Australia) Ltd to enforce rights under s 6 of the...