• Federal Court Clarifies Limits of ‘Unfair Contract Terms’ in Insurance Policies – What the HCF Life Insurance Decision Means for Insurers and Policyholders - The Full Federal Court has delivered a significant judgment for the insurance industry in Australian Securities and Investments Commission v HCF Life Insurance Company Pty Limited [2026] FCAFC 81, confirming important limits on the application of the unfair contract terms regime to insurance products, while reinforcing insurers’ exposure to misleading conduct risks.
• Has the pendulum swung in favour of Australian shareholder class action plaintiffs? - The D&O insurance market previously welcomed a string of losses for Australian shareholder class action plaintiffs. While some of those decisions held that there had been contravening conduct, the lead plaintiffs had failed to establish that any loss flowed from such conduct. In more recent times, the bar to establish causation and loss has been lowered with two decisions, although the law is in somewhat of a state of flux and the High Court of Australia will be weighing in on these issues in the coming months. The outcome of the High Court litigation is likely to have a major impact on the D&O market including the management and settlement of securities claims as well as capacity and pricing considerations.
• State Obtains Complete Indemnity from Teacher in Landmark Historical Sexual Abuse Decision - NS v State of New South Wales (Department of Education) [2026] NSWDC 254 - On 17 July 2026 in NS v State of New South Wales (Department of Education) [2026] NSWDC 254 Abadee DCJ ordered, amongst other things, that pursuant to ss5(1)(c) and 5(2) of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW), a former teacher convicted of sexually abusing a student was to indemnify the State in respect of its payment to the plaintiff as well as pay damages for breach of contract. Jacqueline Haski and Alex Carolan of Moray & Agnew, acted for the State.