Selig v Wealthsure Pty Ltd [2015] HCA 18: Proportionate liability regime

THE HIGH COURT CLARIFIES AND LIMITS THE APPLICABILITY OF THE CORPORATIONS ACT 2001 (CTH) PROPORTIONATE LIABILITY REGIME

In our May 2015 E-alert entitled " Proportionate Liability Update - High Court Clarification Pending", we considered the submissions made on behalf of the Selig's and Wealthsure Pty Ltd ("Wealthsure") to the High Court.

The Seligs had appealed the majority decision of the Full Federal Court that the legislative intention of Division 2A of the Corporations Act 2001 (Cth) ("the Act") was that the proportionate liability provisions are enlivened, so long as one successful cause of action is apportionable notwithstanding the balance are not. The only pre-requisite is that the loss and damage for each cause of action be the same. It was also found to be irrelevant that the apportionable claim for the purpose of section 1041L fell outside section 1041H.