Todd v Alterra at Lloyds Ltd (on behalf of the underwriting members of Syndicate 1400) [2016] FCAFC 15

FEDERAL COURT OF AUSTRALIA

Todd v Alterra at Lloyds Ltd (on behalf of the underwriting members of Syndicate 1400) [2016] FCAFC 15 Appeal from: Sienkiewicz (As Trustee for the Sienkiewicz Superannuation Fund) v Salisbury Group Pty Limited (in Liquidation) (No 2) [2015] FCA 147

File number: NSD 306 of 2015

Judges: ALLSOP CJ, GLEESON AND BEACH JJ

Date of judgment: 19 February 2016

Catchwords: INSURANCE – insurance policy – interpretation and construction – whether, by reason of the doctrine of strictissimi juris, any doubt as to the proper construction of the policy should be resolved in favour of the insurers – whether statements of the High Court relating to contracts of guarantee and indemnity apply to insurance policies – contracts of insurance distinguishable from contracts of guarantee and indemnity and possess a different purpose INSURANCE – financial services errors and omissions policy – interpretation and construction – whether insurers liable for errors or omissions of the insureds in the performance of professional services, defined relevantly to mean financial planning encompassing advice on approved investment products and life insurance products – meaning of terms "approved investment products" and "encompassing" – whether liability restricted to financial advice given on investment products contained in an "Approved Product List" –primary judge erred in giving the terms a narrow construction – the insurance clause covered all aspects of financial planning, as long as the financial planning contained advice on approved investment products, being products that were approved by the licensee from time to time

Legislation: Corporations Act 2001 (Cth), ss 761A, 716G, 716GA, 766A, 766B, 912B, 913B, 916A, 917A-917E Corporations Regulations 2001 (Cth), reg 7.6.02AAA Insurance Contracts Act 1984 (Cth)