Westpac Life Insurance Services Limited v Mahony (No 3) [2020] FCA 285

Westpac Life Insurance Services Limited v Mahony (No 3) [2020] FCA 285

Mr Mahony’s criminal conviction for the murder of Ms Coldwell activates the forfeiture rule, precluding him from receiving any benefit from the life insurance policy; proceeds fall to the estate of Ms Coldwell.

Parties
Applicant: Westpac Life Insurance Services Limited; First Respondent: Louis James Mahony; Second Respondent: Patricia Marlene Coldwell as the executor of the estate of the late Lainie Coldwell; Third Respondent: Dakota Mardell Mahony (by her litigation representative Athol Butler)
Jurisdiction
Australia
Judgment Date
10 March 2020
Procedural Posture
Application Under Life Insurance Act 1995 (cth) S 215 / Final Determination
Outcome
Proceeds of life insurance paid to estate of Ms Coldwell; costs awarded to solicitors for second and third respondents from funds in Court.
Legal Topics
Forfeiture Rule, Life Insurance Proceeds, Public Policy in Murder Cases
Insurance Equity Forfeiture Rule Life Insurance Proceeds Public Policy in Murder Cases

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Parties

Westpac Life Insurance Services Limited

Applicant

Louis James Mahony

First Respondent

Patricia Marlene Coldwell as the executor of the estate of the late Lainie Coldwell

Second Respondent

Dakota Mardell Mahony (by her litigation representative Athol Butler)

Third Respondent

Procedural Posture

Application Under Life Insurance Act 1995 (cth) S 215 / Final Determination

Legal Issues

  1. 1 Entitlement to life insurance proceeds where potential criminal responsibility for death
  2. 2 Operation of forfeiture rule under public policy

Ratio Decidendi

Mr Mahony’s criminal conviction for the murder of Ms Coldwell activates the forfeiture rule, precluding him from receiving any benefit from the life insurance policy; proceeds fall to the estate of Ms Coldwell.

Court Disposition

Proceeds of life insurance paid to estate of Ms Coldwell; costs awarded to solicitors for second and third respondents from funds in Court.

Orders

  • Balance of funds paid into Court by Westpac Life Insurance Services Limited in respect of policy ZM051547 to trust account of estate solicitors for benefit of estate of the late Lainie Coldwell.
  • Mr Athol Butler appointed as litigation representative of the third respondent nunc pro tunc.