Oberlechner v Tower Australia Limited

In the case of Oberlechner v Tower Australia Limited, the plaintiff sought a declaration that a deed of release was void and sought continuing benefits under an insurance policy. The defendant, Tower Australia Limited, argued that the plaintiff was incapable of earning due to her ongoing depression and therefore, she was not entitled to continuing benefits under the policy. The matter was heard in the Federal Circuit Court of Australia.

The primary legal issue before the court was whether the deed of release was void and if the plaintiff was entitled to continuing benefits under the insurance policy. The court had to consider the provisions of the Contracts Review Act and whether the plaintiff was incapacitated at the time she executed the deed of release. The court also needed to determine whether the plaintiff was incapable of earning due to her ongoing depression and, if so, whether this entitled her to continuing benefits under the policy.

The court found that the plaintiff was suffering from depression, acute grief, and severe financial difficulties when she executed the deed of release. These circumstances were sufficient to render the deed void. The court also found that the plaintiff was indeed incapable of earning due to her continuing depression. As such, the court declared the deed of release void and found that the plaintiff was entitled to continuing benefits under the policy. The court further ordered that the defendant pay the plaintiff the sum of $39,860.66 together with interest at the rate of 5% per annum from 26 February 2018 until the date of judgment.