Insurance Law

Resisting claims brought directly against insurers by claimants

Contact: Mark Brookes and Tom Pepper; Carter Newell (Queensland, Australia)

The recent case of Smart v AAI Ltd; JRK Realty Pty Ltd v AAI Ltd1 concerned two proceedings brought by Mr Nathan Smart (Smart) and JRK Realty Pty Ltd (JRK) pursuant to s 601AG of the Corporations Act 2001 (Cth), where Smart and JRK sought to obtain damages directly against the insurer of a deregistered entity.

The decision provides a useful reminder of the criteria the courts will use to determine whether an insurer is directly liable to a plaintiff.

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