FEDERAL COURT OF AUSTRALIA

Reinsurance Australia Corporation Limited v HIH Casualty and General Insurance Ltd (in liquidation) [2003] FCA 1526

Federal Court Rules O 22 r 2(1)(d)

Reinsurance Australia Corporation Limited (ACN 061 215 601) & Monegasque De Reassurances S.A.M. v HIH Casualty and General Insurance (In Liquidation) (ACN 008 482 291), AIG Europe (UK) Ltd and New Hampshire INSURANCE Company, Heath Group Limited (formerly CE Health plc), Heath Insurance Broking Ltd formerly CE Heath (Insurance Broking) Ltd and Heath North America and Special Risks Ltd, Ice Media Limited and Premier Media Limited & J P Morgan Chase Bank (formerly known as The Chase Manhattan Bank, formerly known as Chemical Securities Inc)

N827 of 2002

JACOBSON J

SYDNEY

19 DECEMBER 2003

REASONS FOR JUDGMENT

1                     These proceedings have been settled as between the applicants and the first, second, third and fifth respondents.

2                     The fourth respondents have been served with the originating process but they have not filed an appearance.  Nor have they ever appeared at any of the directions hearings or interlocutory hearings in the proceedings.

3                     The applicants now seek leave to discontinue the proceedings against the fourth respondents prior to the entry of consent orders signed by the applicants and the other respondents which provide for the proceedings and all cross-claims to be dismissed.  Although it is not strictly necessary, the other respondents have consented to the discontinuance against the fourth respondents.

4                     I have power to grant leave to discontinue the proceedings against the fourth respondents under O 22 r 2(1)(d).  It is appropriate that I exercise the power here where the other parties have agreed to settle and the fourth respondents have taken no part in the proceedings.  It is also appropriate in these circumstances that the applicants should not be required to pay the fourth respondents’ costs

5                     Accordingly, I will make orders in accordance with the short minutes of order submitted under cover of a letter dated 16 December 2003 that the applicants be granted leave to discontinue against the fourth respondents with no order as to costs between those parties.

6                     I direct that the discontinuance against the fourth respondents take effect immediately before the dismissal of the proceedings in accordance with the orders contained in the short minutes of order signed by the applicants and the other respondents which I have signed and dated with today’s date.

Associate:

Date:                19 December 2003