MAM Mortgages Limited v Dascam Pty Ltd trading as Cameron Bros

In the case of MAM Mortgages Limited v Dascam Pty Ltd trading as Cameron Bros, the dispute centred on whether the equity partners of a real estate agency were entitled to indemnity under a professional indemnity insurance policy. The case was heard in the Supreme Court of South Australia. The claimants, Richard Cameron and John Wallace Cameron, sought indemnity under the policy for claims made against them following their retirement from the business. The insurer, MAM Mortgages Limited, denied the claim, arguing that the policy included "run-off" cover only for claims made after the cessation of business and that the omission to complete a renewal declaration constituted a breach of the policy conditions.

The primary legal issue before the court was whether the retirement of the equity partners constituted a cessation of business for the purposes of the "run-off" cover in the insurance policy. Additionally, the court had to determine whether the failure to complete a renewal declaration amounted to an omission to do something required by the policy, which would result in the policy being void under the common law doctrine of utmost good faith. The court was required to interpret the terms of the insurance policy, particularly the definition of "cessation of business" and the consequences of failing to complete a renewal declaration.

The court found that the retirement of the equity partners did not constitute a cessation of business because the agency continued to operate with the remaining partners and employees. The court reasoned that the term "cessation of business" implied a complete and permanent cessation, which was not the case here. Furthermore, the court held that the failure to complete a renewal declaration did not amount to an omission to do something required by the policy, as the renewal declaration was not a condition precedent to the insurer's liability. The court held that the policy remained in effect, and the insurer was liable for claims made against the equity partners during the period of their partnership.

As a result of the court's findings, Richard Cameron and John Wallace Cameron were not entitled to indemnity under the professional indemnity insurance policy. The court made an order that MAM Mortgages Limited was not liable to pay the claimants any indemnity under the policy numbered RESI/90/1097. The claimants' claims were dismissed, and the insurer was not required to compensate the claimants for any claims made against them following their retirement from the business.