The Nominal Defendant v Gabriel

Case [2007] NSWCA 52


Reported Decision: 71 NSWLR 150

New South Wales


Court of Appeal


CITATION: THE NOMINAL DEFENDANT v GABRIEL & ANOR [2007] NSWCA 52
HEARING DATE(S): 1 February 2007
 
JUDGMENT DATE: 

23 March 2007
JUDGMENT OF: Hodgson JA at 1; Basten JA at 16; Campbell JA at 43
DECISION: By majority; (1) Leave to appeal granted, and appeal allowed.; (2) Set aside the orders made by his Honour Judge Naughton QC on 13 March 2006.; (3) Notice of Motion filed by the plaintiff on 30 November 2005 dismissed.; (4) Respondent to pay costs of the appellant of the appeal and of the hearing in the court below.; (5) Respondent to have a certificate under the Suitors Fund Act 1951.
CATCHWORDS: TORTS – NEGLIGENCE – Road Accident cases – admission of liability made by insurer out of court pursuant to section 81 Motor Accidents Compensation Act 1999 – exemption granted enabling claim to be pursued in court – insurer files defence denying liability – whether that defence liable to be struck out by reason of the earlier section 81 admission - PROCEDURE – striking out defence – motor accident claim – admission of liability under section 81 Motor Accidents Compensation Act 1999 – defence in court proceedings denies liability – whether defence liable to be struck out - EVIDENCE – confessions and admissions – whether admission able to be “withdrawn” - TRAFFIC LAW – Transport accident legislation – liability – admission by insurer – withdrawal – Motor Accidents Compensation Act 1999, section 81
LEGISLATION CITED: Civil Procedure Act 2005
Evidence Act 1995
Freedom of Information Act 1989
Motor Accidents Act 1988
Motor Accidents Compensation Act 1999
Suitors Fund Act 1951
Supreme Court Act 1970
Transport Accidents Compensation Act 1987
Uniform Civil Procedure Rules 2005
CASES CITED: Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc (1981) 148 CLR 170
Brisbane South Regional Health Authority v Taylor (1996) 186 CLR 541
Clough and Rogers v Frog (1974) 48 ALJR 481
Commonwealth v Verwayen (1990) 170 CLR 394
Dovuro Pty Ltd v Wilkins (2003) 215 CLR 317
Drabsch v Switzerland General Insurance Company Ltd and ors (Supreme Court of NSW, Santow J, 16 October 1996, unreported)
Dunn v Brown and Another (1911) 12 SR (NSW) 22
In Re the Will of FB Gilbert (dec) (1946) 46 SR (NSW) 318
Government Insurance Office of New South Wales v Phillips (NSW Court of Appeal, 27 August 1992, unreported)
Hannaford v Cochrane (Supreme Court of NSW, Dunford J, 14 September 1995, unreported)
Leaf v Boral Transport Ltd (1993) 35 NSWLR 592
Lee v Yang [2006] NSWCA 214
Maile v Rafiq [2005] NSWCA 410
McFadden v Snow (1952) 69 WN (NSW) 8
Ness v Graffen (2003) 60 NSWLR 549
Rafiq v Maile [2006] HCA Trans 243
Ricketts v Callan (1992) 15 MVR 220
The State of Queensland and another v J L Holdings Pty Ltd (1997) 189 CLR 146
Technical Products Pty Ltd v State Government Insurance Office (Qld) (1989) 167 CLR 45
Urquhart v Butterfield (1887)

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AGLC
The Nominal Defendant v Gabriel [2007] NSWCA 52
Case
[2007] NSWCA 52
Decision Date

CaseChat Overview and Summary

The Nominal Defendant appealed to the Court of Appeal of New South Wales against a decision of Judge Naughton QC. The appeal concerned a motor accident claim brought by the respondent, Gabriel, against the appellant. An insurer had made an admission of liability out of court pursuant to section 81 of the *Motor Accidents Compensation Act 1999* (NSW), and an exemption had been granted allowing the claim to proceed in court. Despite this admission, the Nominal Defendant filed a defence denying liability.

The central legal issue before the Court of Appeal was whether the defence filed by the Nominal Defendant, which denied liability, should be struck out by reason of the earlier admission of liability made by the insurer under section 81 of the *Motor Accidents Compensation Act 1999*. This also raised the question of whether such an admission, once made, could be effectively "withdrawn" by the insurer in subsequent court proceedings.

The Court of Appeal, by majority, determined that the defence was not liable to be struck out. The majority reasoned that an admission made under section 81 of the *Motor Accidents Compensation Act 1999* did not have the effect of precluding the defendant from filing a defence denying liability in subsequent court proceedings. The court held that the admission under section 81 was a procedural step to facilitate the claim, but it did not operate as a binding admission of fact or law that would prevent the defendant from disputing liability in court. The principles concerning the withdrawal of admissions in evidence were considered, but the court found that the statutory scheme under the *Motor Accidents Compensation Act 1999* allowed for the denial of liability in court despite the earlier admission.

Consequently, leave to appeal was granted, and the appeal was allowed. The orders made by Judge Naughton QC were set aside, and the plaintiff's notice of motion to strike out the defence was dismissed. The respondent was ordered to pay the costs of the appellant of the appeal and of the hearing in the court below, and was granted a certificate under the *Suitors Fund Act 1951*.

Orders

Orders of the court

By majority; (1) Leave to appeal granted, and appeal allowed.; (2) Set aside the orders made by his Honour Judge Naughton QC on 13 March 2006.; (3) Notice of Motion filed by the plaintiff on 30 November 2005 dismissed.; (4) Respondent to pay costs of the appellant of the appeal and of the hearing in the court below.; (5) Respondent to have a certificate under the Suitors Fund Act 1951.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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