Can a statutory charge affect advancement of legal costs for an appeal?
King & Wood Mallesons’ previous alert discussed the NSW Court of Appeal’s decision on the operation of section 6 of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW) (s 6) in the Great Southern proceedings. The court unanimously held that s 6 did not apply to the claims in those proceedings because they were not instituted in a NSW court. This article considers what the decision may mean for advancement of legal costs on appeal.
The court held that s 6 creates a charge only in relation to insurance moneys that are, or may become, payable in respect of a liability to pay damages or compensation and not otherwise. The court found that until a liability to pay damages or compensation has been determined by judgment, award or settlement, there is nothing to which the charge can attach or on to which it can descend.
If s 6 was construed to include in its scope all the moneys that might be payable under a contract of insurance, then this would alter the contractual rights of the insured to be advanced defence costs. The court held that there was nothing in s 6 to suggest that it was intended to alter such rights, and if this was the intention then parliament would have provided so in express terms…
If you are registered and logged in to the site, click on the link below to read the rest of the King & Wood Mallesons briefing. If not, please register or sign in with your details below.
News from King & Wood Mallesons
News from The Lawyer
Briefings from King & Wood Mallesons
Principals and contractors need to be aware that in not registering security interests under the PPSA 2009, they may risk serious consequences.
The New Companies Ordinance (NCO) will come into effect on 3 March 2014. It includes changes that affect the way documents may be executed.
Analysis from The Lawyer
All-encompassing change is now a reality for the UK’s top 200 firms. How are they coping with the unprecedented upheaval? The Lawyer finds out