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ARTICLE · 15 SEPTEMBER 2010

Ringing Endorsement Of Trustee’s Claim

Moray & Agnew
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In CGU Insurance Limited v One.Tel Limited (in liquidation) & Ors [2010] HCA 26, the preliminary questions raised for determination in the proceeding ended up in the High Court after two appeals, over three years. Ultimately, CGU failed in its attempt to ‘knock out’ the claim on technical points.

AustraliaInsurance
Richard Midgley
Richard Midgley
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CGU Insurance Limited v One.Tel Limited (in liquidation) & Ors [2010] HCA 26

In this recent decision, preliminary questions raised for determination in the proceeding ended up in the High Court after two appeals, over three years. Ultimately, CGU failed in its attempt to 'knock out' the claim on technical points.

Facts

Mr Greaves was a former director of One.Tel Limited and an insured under a directors and officers policy issued by CGU Insurance Limited ('the policy').

One.Tel went into liquidation and ASIC sought compensation against Mr Greaves. CGU purported to avoid the policy.

In September 2004 a judgment was obtained by consent against Mr Greaves by ASIC. The judgment required Mr Greaves to pay compensation of $20 million and $350,000 for costs of ASIC ('the ASIC compensation order').

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