Registrar-General of New South Wales v LawCover Insurance Pty Ltd

The Registrar-General of New South Wales sought leave to enforce a charge over insurance moneys payable by LawCover Insurance Pty Ltd, the insurer of a solicitor. The Registrar-General's claim arose from a loss that had been the subject of a claim on the Torrens Assurance Fund, to which the solicitor's conduct had contributed. The dispute concerned the nature and extent of the Registrar-General's subrogation rights under the *Real Property Act 1900* (NSW). The matter was heard in the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the Registrar-General was entitled to be subrogated to the rights of a claimant against LawCover Insurance Pty Ltd, specifically in relation to a charge said to arise under section 6 of the *Law Reform (Miscellaneous Provisions) Act 1946* (NSW). This required the court to determine whether the claimant possessed any enforceable right against the insurer under section 6(4) of that Act, which would then be available to the Registrar-General by way of subrogation under section 133(2) of the *Real Property Act 1900* (NSW).

The Court of Appeal reasoned that the Registrar-General's right of subrogation under section 133(2) of the *Real Property Act 1900* (NSW) entitled the Registrar-General to the advantage of every right of a claimant on the Fund against any person in relation to the claimant's "compensable loss". However, the court found that the claimant had no right of action against the insurer under section 6(4) of the *Law Reform (Miscellaneous Provisions) Act 1946* (NSW) because the event giving rise to the claim for damages or compensation had occurred before the relevant contract of insurance was made. Consequently, there was no right to enforce a statutory charge to which the Registrar-General could be subrogated.

The Court of Appeal ordered that leave to appeal be granted, that the existing Notice of Appeal stand as the notice of appeal, and that the appeal be dismissed. The applicant/appellant was ordered to pay the respondent's costs of the application for leave to appeal and of the appeal.