CGU Insurance Ltd v Watson (as trustee of the deed of arrangement in respect of Greaves)

[2007] NSWCA 301

NSW Court of Appeal

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Interrogate

Catchwords

1. Practice and Procedure
2. › Stay of proceedings
3. › Costs of prior proceedings unpaid
4. › Whether further proceedings on same or substantially similar cause of action
5. › Meaning of 'cause of action'
6. › UCPR r 12.4
1. Practice and Procedure
2. › Cause of action
3. › Identification of cause of action in contract
4. › Level of particularity
5. › Essential facts relied upon
6. › Whether different breaches of same contract constitute different causes of action
1. Practice and Procedure
2. › Declaratory relief
3. › Whether claim to declaration constitutes a cause of action
4. › Supreme Court Act 1970 (NSW), s 75
1. Insurance
2. › Directors and officers liability insurance
3. › Nature of claims under contract of insurance
4. › Distinction between claim for Defence Costs and claim for Loss
5. › When cause of action for breach accrues

Quick Take

For the purposes of UCPR r 12.4, proceedings claiming payment under an insurance policy for a compensation order are not on the same or substantially the same cause of action as earlier discontinued proceedings claiming Defence Costs under the same policy, because the essential facts relied upon differ — the breach in each case is the insurer's failure to pay different amounts in different circumstances. A claim to declaratory relief is not itself a cause of action for the purposes of r 12.4. The nature of a cause of action under a contract of insurance is for unliquidated damages for breach of contract, accruing only when the insurer fails to pay amounts it was required to pay.