High Court Prefers Strict Application Of section 45 of the Insurance Contracts Act 1984 (Cth) and ASIC v Fortescue Metals (No. 5) [2009] FCA 1586
Apr 2010 |In the recent decision of Zurich Australian Insurance Ltd v Metals & Minerals Insurance Pte Ltd [2009] HCA 50 the High Court preferred a strict application of section 45 of the ICA, by determining that the section was confined in its operation to a policy of insurance the insured "has entered into", in a narrow sense.
Reliance on external legal advice was sufficient in the case of ASIC v Fortescue Metals (No. 5) [2009] FCA 1586 to show the director had not breached his duties and that the information he provided - even if incorrect - was based on an opinion reasonable and honestly held.
Mark Brookes, Partner | mbrookes@carternewell.com, David Fisher, Solicitor and Stacey Leeke, Solicitor
Insurance Newsletter, March 2010
