Hannover Life Re of Australasia Ltd v Minister for Families and Communities (No 2)
[2023] FCA 106
•17 February 2023
FEDERAL COURT OF AUSTRALIA
Hannover Life Re of Australasia Ltd v Minister for Families and Communities (No 2) [2023] FCA 106
File number: NSD 893 of 2022 Judgment of: ALLSOP CJ Date of judgment: 17 February 2023 Catchwords: INSURANCE – application by an insurer under s 215 of the Life Insurance Act 1995 (Cth) – where applicant seeks for its costs to be paid – question of appropriate entitlement to costs payable from the life insurance policy proceeds Legislation: Life Insurance Act 1995 (Cth), s 215 Cases cited: Hannover Life Re of Australasia Ltd v Minister for Families and Communities [2023] FCA 80 Division: General Division Registry: New South Wales National Practice Area: Commercial and Corporations Sub-area: Commercial Contracts, Banking, Finance and Insurance Number of paragraphs: 4 Date of hearing: Determined on the papers Solicitor for the applicant: Turks Legal Solicitor for the respondent: NSW Crown Solicitor ORDERS
NSD 893 of 2022 BETWEEN: HANNOVER LIFE RE OF AUSTRALASIA LTD (ABN 37 062 395 484)
Applicant
AND: THE MINISTER FOR FAMILIES AND COMMUNITIES
Respondent
ORDER MADE BY:
ALLSOP CJ
DATE OF ORDER:
17 FEBRUARY 2023
THE COURT ORDERS THAT:
1.The applicant’s costs be fixed in the amount of $15,000 plus disbursements of $6,788, such payment to be made out of the Balance Life Benefit Amount payable by the applicant under policy 350005102 (the Policy), before the payment into Court referred to in order 2.
2.Declaration that the Balance Life Benefit Amount, being the sum of $231,525, is the amount payable by the applicant under the Policy.
3.Declaration that the amount payable referred to in order 2, less the amount of costs required to be paid under order 1, when paid into the Court by the applicant is a payment under subs 215(1) of the Life Insurance Act 1995 (Cth), and on such payment, the applicant be discharged from any liability in relation to that amount that may have arisen in respect of the policy pursuant to subs 215(2) of the Life Insurance Act.
4.Stand over the balance of the proceedings concerning the disposition of the moneys under subs 215(3) of the Life Insurance Act held by the Court under subs 215(2) of the Life Insurance Act to a date to be fixed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
ALLSOP CJ:
This matter concerns an application by an insurer for a declaration that, upon the payment of certain monies into Court, the insurer be discharged from any liability that may have arisen under a life insurance policy pursuant to s 215 of the Life Insurance Act 1995 (Cth). The insurer also seeks an order that its costs in connection with the proceedings be paid from the life insurance proceeds, with the Court to determine the appropriate sum to be paid.
On 10 February 2023, I published reasons for judgment (Hannover Life Re of Australasia Ltd v Minister for Families and Communities [2023] FCA 80) explaining my view that the insurer reasonably formed the opinion that no sufficient discharge with respect to the life insurance policy in question could be obtained otherwise than paying money into the Court, and that the declarations sought regarding s 215 of the Act should be made. I also explained the basis for my view that, considering the entirety of the circumstances of the case, the insurer should be entitled to take from the life insurance proceeds solicitors’ costs of $15,000 plus disbursements of $6,788. I did not, however, make orders to that effect on 10 February to give the Minister for Families and Communities the opportunity to be heard on the question of the insurer’s costs.
By email on 15 February, the solicitor acting for the Minister informed my chambers that the Minister does not oppose the orders that I proposed to make in my judgment of 10 February. Those orders not being disputed, I make them now for the reasons previously given.
Those orders resolve the question of the relief sought in the insurer’s originating application filed on 20 October 2022 and it is anticipated that the insurer will no longer be required to play an active role in these proceedings. However, there remains the question of the disposition of the monies to be paid into Court as a consequence of the orders. The proceedings will accordingly be stood over to a date to be fixed in consultation with my chambers. I note that my chambers has engaged in correspondence with the Minister regarding the future conduct of this matter.
I certify that the preceding four (4) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Chief Justice Allsop. Associate:
Dated: 17 February 2023
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