Dionne Gavin v Janet Morgan and AAMI Limited t/as AAMI

Dionne Gavin brought proceedings against Janet Morgan and AAMI Limited, trading as AAMI, in the District Court of New South Wales. The plaintiff sought damages for personal injury sustained in a motor vehicle accident. The nature of the dispute centred on conflicting accounts of the accident and the insurer’s role when good faith was in question. The plaintiff claimed that she was injured in a motor vehicle accident caused by the defendant Janet Morgan, and that AAMI Limited had failed to act in good faith in handling her claim for damages.

The court was required to determine the credibility of the conflicting accounts of the accident, and assess the appropriate quantum of damages for the plaintiff. The court also had to consider the role of the insurer, AAMI Limited, in the context of good faith obligations and the effect of any breaches on the plaintiff's recovery of damages. The plaintiff argued that AAMI Limited had acted in bad faith by unreasonably delaying and undervaluing her claim, which in turn had resulted in an inadequate settlement offer.

The court found that the plaintiff's account of the accident was credible and that Janet Morgan was liable for the accident. The court assessed the plaintiff's damages at $473,715, which included general damages, special damages, and interest. The court also found that AAMI Limited had acted in bad faith by unreasonably delaying and undervaluing the plaintiff's claim. As a result, the court ordered AAMI Limited to pay the plaintiff's costs of the proceedings on an ordinary basis and Janet Morgan's costs on an indemnity basis. The court further ordered that the exhibits be retained for 28 days and that the verdict and judgment be stayed until 1 February 2016.