Allianz Australia insurance Ltd v Mercer

Allianz Australia Insurance Ltd appealed to the Court of Appeal of New South Wales against a decision concerning a claim brought by Mr Mercer. The dispute arose from Mr Mercer's claim against a company that had subsequently deregistered. Mr Mercer sought to pursue his claim against Allianz, the insurer of the deregistered company, under a statutory cause of action.

The central legal issue before the Court of Appeal was whether Mr Mercer's claim against Allianz was statute-barred. Specifically, the court had to determine which limitation period applied to the statutory cause of action against the insurer, and whether Mr Mercer's claim had been commenced within that period. The court considered the interplay between the limitation period applicable to the original cause of action against the deregistered company and the limitation period for the statutory claim against the insurer.

The Court of Appeal reasoned that the statutory cause of action against the insurer, as provided for in s 6(1) of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW), was intended to stand in the shoes of the claimant's original cause of action against the insured. Therefore, the applicable limitation period for the claim against Allianz was the same as that which would have applied to Mr Mercer's claim against the deregistered company immediately before its deregistration. The court concluded that, on the assumed facts, Mr Mercer's claim was indeed statute-barred.

Consequently, the Court of Appeal allowed the appeal, setting aside the previous judgment and determination. The court determined that, assuming the allegations in the statement of claim and the defence regarding discoverability were proved, Mr Mercer was precluded from recovering damages or monies from Allianz. The specific issue pleaded in paragraph 16 of Allianz's defence, relating to the date of discoverability, was remitted for determination by a single judge.