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ARTICLE · 31 AUGUST 2007

Case Note: Hayek v Trujillo [2007] NSWCA 139

Where the Insurer rejects an explanation for delay and does not "accept liability under the claim" the Insurer is arguably not bound by the result of a General Assessment irrespective of the outcome of the Special Assessment of the late claim dispute.

AustraliaInsurance

18 June 2007
Mason P, Ipp and McColl JJA

In Brief

  • Where the Insurer rejects an explanation for delay and does not "accept liability under the claim" the Insurer is arguably not bound by the result of a General Assessment irrespective of the outcome of the Special Assessment of the late claim dispute.
  • Discussion

    One of the controversial aspects of Hayek v Trujillo arises from the obiter comments made by Ipp JA in paragraph 67, as follows:

    "67 Thus, in my view, a claimant, who has received an unfavourable certificate under s 96(1)(a), is entitled, thereafter, so long as the claim is not exempt from assessment, to require the claims assessor to make an assessment of the issue of liability (unless the insurer has accepted liability – see s 94(1)(a)) and the amount of damages for that liability, and to issue a certificate as to the assessment under s 96(4). The claimant, thereafter, would be entitled to commence court proceedings (despite the unfavourable s 96

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