AIG Australia Limited (ACN 004 727 753) v Kim Samuel Jaques

In the case of AIG Australia Limited v Kim Samuel Jaques, the dispute centred around the interpretation of an investment management insurance policy. The plaintiff, AIG Australia Limited, sought a declaration that the defendant, Mr Kim Samuel Jaques, was not entitled to the benefits of a special excess limit under the policy during the relevant period, as he was not a non-executive director of the company at that time. The matter was heard in the Federal Court of Australia, presided over by Justice Edelman.

The primary legal issue for the court was to determine the meaning of "non-executive director" in the context of the insurance policy. The court needed to decide whether Mr Jaques was a non-executive director of the company, as the policy provided for a special excess limit only in respect of non-executive directors. The court examined various factors, including Mr Jaques' employment status, his representation in Product Disclosure Statements, and his role within the company. The court also considered whether Mr Jaques performed executive functions in the management and administration of the company.

The court concluded that Mr Jaques was not a non-executive director during the relevant period. Despite being represented as an executive director in Product Disclosure Statements and regarded as such by the company board, the court found that Mr Jaques did not perform executive functions. The court emphasised that Mr Jaques was employed by a related company, rather than the company itself, and his tasks primarily benefited the company. Consequently, the court held that Mr Jaques was not an executive director, and therefore, he was not entitled to the special excess limit under the policy. The appeal was dismissed.

No additional orders were made by the court beyond dismissing the appeal and affirming the lower court's decision.