Meaning of S 29(3) Civil Liability Act 1961

allmight · 02-02-2019 09:44PM #1

Hi fellas!

Here's section 29.3 of Civil Liability Act 1961:

"Where the contributor had knowledge of an action brought by the injured person against the claimant, and unreasonably failed to make a proposal for assisting the claimant in the defence of the action, and the injured person obtained judgment against the claimant, the contributor shall, in any proceeding brought against him by the claimant, be estopped from disputing the propriety or amount of the judgment obtained by the injured person or any question of law or fact common to the claimant’s liability to the injured person and the contributor’s liability to the injured person: but the contributor shall not be so estopped where the claimant submitted to judgment in fraud of the contributor."

I don't really get what the last part of it means, namely: "submitted to judgment in fraud of the contributor". Could someone please explain?

Thank you!

nuac · 02-02-2019 10:02PM

Mod
Title amended for greater clarity

Mr. Incognito · 05-02-2019 11:31AM

You have to read the section and the Act to put everything in context. Not just one line.

The Section deals with recouping money from other persons who are responsible or have a liability.

It basically means that when you seek to get money from other responsible parties they cant give out about the size of the judgment or raise any other issues in play that happened in the action. They are "Estopped" from raising these issues. They have to make a contribution.

This however doesnt apply if their or attributed liability is a consequence of fraud.

It is difficult to apply in practice however as if you could prove a fraud it is unlikely that the judgment would have been given in the first place or it can apply where one party is injured innocently in anothers fraudulent set up.

allmight · 07-02-2019 08:33PM

Thank you very much for your answer! Turns out my initial guess was right, the wording just seemed extremely odd to me, so I couldn't be sure. "Submitted to judgement in fraud of" - they definetely could have expressed that much simpler!

Meaning of S 29(3) Civil Liability Act 1961

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