Note 10: Contingent Liabilities and Assets
| Guarantees | Claims for damages or costs |
Total | ||||
|---|---|---|---|---|---|---|
| 2011 $’000 |
2010 $’000 |
2011 $’000 |
2010 $’000 |
2011 $’000 |
2010 $’000 |
|
| Contingent assets | ||||||
| Balance from previous period | - | - | 101 | 1,108 | 101 | 1,108 |
| New | - | - | - | 92 | - | 92 |
| Re-measurement | - | - | - | - | - | - |
| Assets recognised | - | - | - | (15) | - | (15) |
| Expired | - | - | (89) | (1,084) | (89) | (1,084) |
| Total contingent assets | - | - | 12 | 101 | 12 | 101 |
| Contingent liabilities | ||||||
| Balance from previous period | 134 | 426 | 1,011 | 1,193 | 1,145 | 1,619 |
| New | - | - | - | 408 | - | 408 |
| Re-measurement | (6) | (31) | (39) | (361) | (45) | (392) |
| Liabilities recognised | - | - | (399) | (60) | (399) | (60) |
| Obligations expired | (3) | (261) | (32) | (169) | (35) | (430) |
| Total contingent liabilities | 125 | 134 | 541 | 1,011 | 666 | 1,145 |
| Net contingent assets (liabilities) | (125) | (134) | (529) | (910) | (654) | (1,044) |
Quantifiable Contingencies
The Schedule of Contingencies reports contingent liabilities in respect of claims for damages / costs of $540,959 (2010: $1,010,837). This amount represents an estimate of the Department's liability based on precedent cases and on advice from the Department's external legal service providers. The Department is defending the claims.
The Schedule of Contingencies reports contingent liabilities in respect of bank and residential lease guarantees made by the department of $125,014 (2010: $133,504).
The Schedule also reports contingent assets in respect of claims for damages / costs of $12,580 (2010: $101,494). The Department is expecting to succeed in claims and receive costs from claimants, although the cases are continuing. The estimate is based on precedent in such cases and on advice from the Department’s external legal service providers.
Unquantifiable Contingencies
At 30 June 2011, the Department was involved in a number of litigation matters for losses allegedly suffered by claimants. The Department is defending the claims. It is not possible to estimate the amounts of any eventual payments that may be required in relation to these claims.
Significant Remote Contingencies
The Department is currently defending a number of other legal claims. At 30 June 2011, advice from the Department’s external legal service providers is that the Department has a strong case in each of these matters and is not likely to be found liable.