Introduction
In Genworth Financial Mortgage Insurance Pty Ltd v KCRAM Pty Ltd
(in liq) (No 2) [2011] FCA 1124, the Federal Court considered the
point at which an "event giving rise to the claim for damages
or compensation" occurs for the purposes of section 6(1) of
the Law Reform (Miscellaneous Provisions) Act 1946 (NSW)
(the Act).
Facts
Genworth provided mortgage insurance to lenders. KCRAM was a
property valuer. When four security properties were sold below
their valuation price following default by the borrowers, Genworth
sued KCRAM claiming that the valuations were prepared
negligently.
After KCRAM went into liquidation, Genworth sought leave, under
s 6(4) of the Act, to join the valuer's professional indemnity
insurer, International Insurance Company of Hannover Limited
(Hannover), as a second respondent to the
proceeding. Leave would have given Genworth, pursuant to s 6(1) of
the Act, the possibility to enforce a charge over insurance funds
payable by
