Rich v CGU Insurance Limited

Insurance – Professional indemnity insurance – Directors and officers liability insurance policy – Exclusion for losses arising from dishonest, fraudulent or malicious conduct – Exclusion engaged only where conduct established to have occurred following final adjudication adverse to the insured – Proceedings instituted against appellants involving questions of breach of duty as company directors – Appellants claimed for advance payment of defence costs under policy – Respondent insurer purported to deny liability relying on exclusion under the policy – Respondent also argued that it had avoided the policy under the Insurance Contracts Act 1984 (Cth), s 28 – Whether respondent can rely on exclusion absent an existing judgment or other final adjudication adverse to appellants.

Practice and procedure – Appeal – Separated questions for determination – Appeal in respect only of one answered question and not in respect of other two – Whether any utility in considering the correctness of the answer appealed from in light of other two undisturbed answers – Avoidance of circuity of action.

High Court – Special leave to appeal – Special leave granted – Whether special leave to appeal should be revoked.