GLG Australia Pty. Ltd. v The Nominal Defendant and Ors. (No.2)

In GLG Australia Pty. Ltd. v The Nominal Defendant and Ors. (No.2), the New South Wales Court of Appeal considered a dispute arising from a motor vehicle accident and the scope of third-party insurance. The case involved claims for indemnity and the court's power to award interest and costs.

The central legal issues before the Court of Appeal were whether the third-party insurance extended to indemnify the insured (GLG Australia Pty. Ltd.) against its liability to its own lawyers for defending a claim based on injury, and whether the insurer was liable to indemnify GLG Australia for interest on judgment monies paid.

The Court of Appeal allowed the appeal, setting aside the verdict and judgment entered against GLG Australia in the District Court. The court found that the first respondent, as the insurer, was obliged to indemnify GLG Australia for the judgment awarded against it and for the interest on those judgment monies. Furthermore, the insurer was ordered to indemnify GLG Australia for its costs in the District Court proceedings and the costs of the appeal. The second respondent was awarded judgment against the third respondent and against GLG Australia, with the insurer ordered to indemnify GLG Australia for this latter judgment.