Sandstrom v FSS Trustee Corporation

Supreme Court

New South Wales

• Amendment notes

Medium Neutral Citation:	Sandstrom v FSS Trustee Corporation & Anor [2020] NSWSC 200
Hearing dates:	16, 17, 18, 19, 20 & 23 April, 16 May, 8 October and 8 November 2018
Date of orders:	09 March 2020
Decision date:	09 March 2020
Jurisdiction:	Equity
Before:	Slattery J
Decision:	The second defendant’s decision of 24 July 2015 to decline the plaintiff’s claim is set aside. The Court reassesses the plaintiff’s claim as at the date of assessment and finds she satisfies the TPD definition within the policies. Orders made for payment of the sums agreed under each policy. Directions made for the calculation of interest and for any argument in relation to costs.
Catchwords:	INSURANCE – General – total and permanent disablement – plaintiff a police officer – plaintiff discharged from police force in July 2011 – plaintiff a member of police superannuation fund – first defendant is a trustee of the fund – first defendant takes out two policies of insurance for the benefit of members of the fund with the second defendant insurer – plaintiff claims she is totally and permanently disabled (“TPD”) after being off work for six months and entitled to a benefit for the same – the first and second defendants decline the plaintiff’s claim in July 2015 – plaintiff discontinues proceedings against first defendant – whether the second defendant insurer acted with the utmost good faith in dealing with the plaintiff’s claim and acted reasonably in forming an opinion as to whether the plaintiff qualified as TPD under the policies – whether the second defendant’s decision can be set aside – whether the Court should now itself determine whether the plaintiff is TPD under the policies – whether the plaintiff was “unlikely ever to be able to engage in or work for reward in any occupation or work for which… she is reasonably qualified by education training or experience”.
Legislation Cited:	Crown Employees (Police Officers Death and Disability) Award 2005
Cases Cited:	Associated Provincial Picture Houses Ltd v Wednesbury Corporation [1948] 1 KB 223 Banovic v United Super Pty Ltd [2014] NSWSC 1470 Beverly v Tyndall Life Insurance Co Ltd (1999) 21 WAR 327 Birdsall v Motor Trades Association of Australia Superannuation Fund Pty Ltd [2015] NSWLR 412 CGU Insurance Ltd v AMP Financial Planning Pty Ltd (2007) 235 CLR 1 Chammas v Harwood Nominees (1993) 7 ANZ Ins Cas 61-175 Edwards v Hunter Valley Co-op Dairy Co Ltd (1992) 7 ANZ Ins Cas 61-113 Erzurumlu v Kellogg Superannuation Pty Ltd [2013] NSWSC 1115 Finch v Telstra Super Pty Ltd (2010) 242 CLR 254 Halloran v Hardwood Nominees Pty Ltd [2007] NSWSC 913 Hannover Life Re of Australasia Ltd v Colella (2014) 47 VR 1 Hannover Life Re of Australasia Ltd v Jones [2017] 19 ANZ Ins Cas 62-149 Hannover Life Re of Australasia Ltd v Sayseng [2005] 13 ANZ Ins Cas 90-123 Hannover Life Re of Australasia Ltd v Dargan (2013) 83 NSWLR 246 Hellessey v MetLife…