Lopez v Star World Enterprises Pty Ltd

Rodolfo Lopez applied for leave to proceed with a representative action against Star World Enterprises Pty Ltd, a respondent under administration, in relation to a claim for damages for personal injury allegedly caused by contaminated food. The Court was required to decide whether to grant leave under section 440D(1)(b) of the Corporations Law and whether to order the respondent to produce for inspection relevant contracts of insurance. The Court considered the potential for multiple claimants and the respondent's financial difficulties in determining whether leave should be granted. Additionally, the Court examined whether the respondent should disclose relevant insurance contracts to ensure that any successful applicant could exercise their rights under section 562 of the Corporations Law if the respondent went into liquidation. Olney J concluded that it was in the interests of justice to grant leave to proceed and to require the respondent to produce for inspection evidence of any relevant insurance cover.

In reaching this decision, Olney J referred to the case of Foxcraft v The Ink Group 15 ACSR 203, where Young J highlighted the importance of considering insurance coverage when determining whether to grant leave in representative actions. The Court also noted the difference in the trial process between jurisdictions where issues of fact are tried by a jury and those where they are not, as the latter does not have the same concerns about disclosing insurance details. Based on these considerations, Olney J was prepared to make orders as sought, with a clarification that the obligation to produce for inspection applied only to any contract of insurance relevant to the respondent's potential liability in the proceeding.