Claims against insurers under s601AG of the Corporations
Act 2001 (Cth) and application of the Proportionate Liability
Regime
In the recent Supreme Court of New South Wales decision of
Smart v AAI Ltd; JRK Realty Pty Ltd , The Hon Justice
Robert Beech-Jones ("His Honour") examined the
prerequisite elements of a claim under s601AG of the Corporations
Act 2001 (Cth) ("the Act"). In doing so, His Honour also
discussed the application of the proportionate liability regime
under the Civil Liability Act 2002 (Cth) and the Trade
Practices Act 1974 (Cth) ("TPA") to the
plaintiffs' claims in the proceedings.
BACKGROUND
Between July 2007 and October 2007 the, the plaintiffs, namely
Mr Smart and Ms Kanters the sole director of JRK Realty Pty Ltd
("JRK") were persuaded by Mr Lynch, the General Manager
of a company named Q1, to transfer a total of $267,000 into
Q1's account. Mr Lynch represented that that the monies would
then be used either alone or in conjunction with
