CGU Insurance Ltd v AMP Financial Planning Pty Ltd

CGU Insurance Ltd (CGU) and AMP Financial Planning Pty Ltd (AMP) were parties to litigation before the High Court of Australia concerning a dispute arising from a financial services agreement. The core of the disagreement involved allegations of misleading and deceptive conduct and breaches of contract related to financial advice provided by AMP to its clients, for which CGU provided insurance.

The High Court was required to determine, among other things, whether AMP had engaged in misleading or deceptive conduct in contravention of the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)) and whether AMP had breached its contractual obligations to CGU. A key issue was the extent of AMP's duty of care to its clients and the consequential impact on CGU's liability under the insurance policies it had issued.

The Court's reasoning focused on the interpretation of the contractual relationship between CGU and AMP, and the nature of the financial advice provided. It considered the principles of causation and remoteness in relation to damages claimed by CGU. The High Court ultimately found that AMP had engaged in misleading and deceptive conduct and had breached its contractual obligations, leading to liability for the losses suffered by CGU. The decision affirmed the importance of clear contractual terms and the application of consumer protection legislation to financial services.