Carr v Needham

Case [2019] ACTSC 98


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Carr v Needham

Citation:

[2019] ACTSC 98

Hearing Date:

15 March 2019

Submissions last received:

Decision Date:

25 March 2019

18 April 2019

Before:

McWilliam AsJ

Decision:

See [60]

Catchwords:

PRACTICE AND PROCEDURE – PLEADINGS – Admissions – application to amend defence to plead contributory negligence – whether admission during pre-litigation compulsory processes precludes an insurer from adopting a different position once proceedings have been commenced.

STATUTORY INTERPRETATION – Road Transport (Third-Party Insurance) Act 2008 (ACT), Pt 4.2 – Whether statute precludes an insurer who does not raise contributory negligence before litigation commences from subsequently pleading contributory negligence in its defence

Legislation Cited:

Court Procedures Act 2004 (ACT) s 5A

Court Procedures Rules 2006 (ACT) rr 407, 507
Motor Accidents Compensation Act 1999 (NSW) s 81
Motor Accident Insurance Act 1994 (Qld) s 41

Road Transport (Third-Party Insurance) Act 2008 (ACT) ss 5A, 84, 97, 104, 115, 116

Cases Cited:

Albrecht v Insurance Australia Limited [2016] ACTCA 58; 12 ACTLR 46

Barker v Gifford [2005] ACTSC 55; 192 FLR 347
Celestino v Celestino (Unreported, Federal Court of Australia, Spender, Miles and Von Doussa JJ, 16 August 1990)
Drabsch v Switzerland General Insurance Co Limited (Unreported, Supreme Court of New South Wales, Santo J, 16 October 1996)
Jeans v Commonwealth Bank of Australia at [2003] FCAFC 309; 204 ALR 327
Maile v Rafiq [2005] NSWCA 410
Nominal Defendant v Gabriel and Anor [2007] NSWCA 52; 71 NSWLR 150
Pertzel v QLD Paulownia Forests Ltd and Anor [2008] QCA 287; 2 Qd R 526
QBE Insurance v Motor Accidents Authority [2008] NSWSC 434; 50 MVR 152
SLE Worldwide v WGB & Others [2005] NSWSC 816
The Owners – Strata Plan 72739 v Allianz Australia Insurance Limited [2017] NSWSC 1118
Till v Nominal Defendant [1999] QCA 490; [2000] 2 Qd R 676
Wollongong Fabrications Pty Ltd v Ramsbottom [2006] NSWCA 279; 68 NSWLR 387

Wyer v Hunt [2005] ACTSC 15

Parties:

Henry Carr (Plaintiff)

Christopher Needham (First Defendant)

Insurance Australia Limited (ACN 000 016 722) trading as NRMA Insurance (Second Defendant)

Representation:

Counsel

Mr J Pappas (Plaintiff)

Mr B Jones (First and Second Defendant)

Solicitors

Aulich Civil Law (Plaintiff)

Moray & Agnew (First and Second Defendant)

File Number:

SCA 39 of 2018

McWilliam AsJ

  1. On 25 March 2015, the plaintiff was injured in a motor vehicle accident while riding his motorcycle.  He lodged a Notice of Claim with the second defendant (NRMA) as insurer of the first defendant, Mr Needham, pursuant to s 84 of the Road Transport (Third-Party Insurance) Act 2008 (ACT) (the Act).

  1. Before proceedings in this Court were commenced, when the parties were communicating and attempting to resolve the claim under the process provided for by the Act, the NRMA admitted a breach of duty of care and did not raise a defence of contributory negligence. Once proceedings were commenced, the defence filed on 4 May 2018, also…

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Carr v Needham [2019] ACTSC 98
Case
[2019] ACTSC 98
Decision Date

CaseChat Overview and Summary

The case of Carr v Needham involved a dispute between the plaintiff, Carr, and the defendant, Needham, with the defendant's insurer, the respondent, also being a party. The plaintiff sought damages for injuries sustained in a motor vehicle accident. The defendant's insurer, which was not the plaintiff's insurer, admitted liability for the accident but did not raise the defence of contributory negligence during the pre-litigation compulsory processes. Once proceedings were commenced, the defendant's insurer sought to amend its defence to include contributory negligence. The plaintiff opposed this application, arguing that the insurer was precluded from changing its position by virtue of its admissions during the compulsory processes.

The primary legal issue before the court was whether the defendant's insurer was precluded from raising contributory negligence in its defence, having not done so during the pre-litigation compulsory processes. The court had to determine whether the Road Transport (Third-Party Insurance) Act 2008 (ACT) precluded an insurer from altering its position regarding contributory negligence once litigation had commenced. The court also had to consider whether the insurer's admissions during the compulsory processes could be used as a basis to prevent the amendment of its defence.

The court held that the defendant's insurer was not precluded from raising contributory negligence in its defence. The court found that the statutory provisions of the Road Transport (Third-Party Insurance) Act 2008 (ACT) did not preclude an insurer from altering its position regarding contributory negligence once litigation had commenced. The court also held that the insurer's admissions during the compulsory processes did not bind the insurer to a particular position once proceedings had been commenced. The court noted that the purpose of the compulsory processes was to facilitate the resolution of disputes without the need for litigation, and that these processes did not have the same binding effect as a court order.

The court's decision allowed the defendant's insurer to amend its defence to include contributory negligence. The court found that the insurer was not precluded from raising this defence by virtue of its previous admissions during the compulsory processes. The court held that the insurer's position could be altered once proceedings had been commenced, and that the statutory provisions did not preclude this change of position. The court's decision in this case provides clarity for insurers and litigants regarding the scope of admissions made during the compulsory processes and the ability of insurers to alter their position once litigation has commenced.

Orders

Orders of the court

See [60]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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