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ARTICLE · 03 AUGUST 2015

Previous credit car hire proceedings – no estoppel?

Previous proceedings by a credit hire car provider in the name of an insured do not preclude a later subrogated action.

AustraliaLitigation, Mediation & Arbitration

Previous proceedings brought by a credit hire car provider in the name of an insured do not necessarily preclude a later subrogated action.

On 29 July 2015 Wilson SCJ refused leave to AAMI to appeal against a determination by Magistrate Milledge of the NSW Local Court in Peters v D'Armas. 

Peters had an insured loss for damage to his vehicle and had also hired a replacement vehicle on credit.  The credit hire provider had commenced and lost proceedings in Peters' name against AAMI's insured D'Armas.  NRMA had also commenced subrogated proceedings in Peters' name without knowing about those earlier hire car proceedings.

AAMI sought to strike out the NRMA proceedings on the basis of estoppel and the operation of S.24 of the Civil Procedure Act 2005 (NSW).  Whilst arguably much of the determination turned on what was described as "the inexplicable failure of AAMI to refer to the first proceedings during its dealings with the NRMA", the comments of the Supreme Court

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