Insurance Australia Ltd trading as CGU Insurance v MOS Beverages Pty Ltd [2021] FCAFC 165

Federal Court of Australia

Insurance Australia Ltd trading as CGU Insurance v MOS Beverages Pty Ltd [2021] FCAFC 165 Appeal from: MOS Beverages Pty Ltd v Insurance Australia Ltd trading as CGU Insurance [2020] FCA 1716 and MOS Beverages Pty Ltd v Insurance Australia Ltd trading as CGU Insurance (No 2) [2020] FCA 1820

File number: NSD 1375 of 2020

Judgment of: BESANKO, MCKERRACHER AND DERRINGTON JJ

Date of judgment: 17 September 2021

Catchwords: INSURANCE — appeal from a declaration made by Federal Court in a proceeding for indemnity under a policy of insurance — where respondent owned goods damaged by fire at insured premises — where primary judge concluded that on proper construction of "Interests of Other Parties" clause, respondent is entitled to indemnity as third party beneficiary under policy pursuant to s 48(1) of the Insurance Contracts Act 1984 (Cth) — whether "Interests of Other Parties" clause extends benefit of cover to third party — whether "Interests of Other Parties" clause restricts scope of property covered in respect of third parties to whom insured was responsible for maintaining insurance — whether "owners" extends to third party — meaning and application of phrase, "specifically noted in the records of the Insured" in "Interests of Other Parties" clause — appeal dismissed

Words & phrases: "owners", "all other parties", "specifically noted"

Legislation: Insurance Contracts Act 1984 (Cth) ss 11, 48

Cases cited: AMEV Finance Ltd v Mercantile Mutual Insurance Ltd [1988] 1 Qd R 487 Australian Broadcasting Commission v Australasian Performing Rights Association Ltd (1973) 129 CLR 99 Biki v Chessells [2004] VSCA 70 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 Fraser Turner Ltd v PriceWaterhouseCoopers LLP [2019] EWCA Civ 1290 Hepburn v A Tomlinson (Hauliers) Ltd [1966] AC 451 HP Mercantile Pty Ltd v Hartnett [2016] NSWCA 342 JKC Australia LNG Pty Ltd v CH2M Hill Co Ltd [2020] WASCA 112 Liberty Mutual Insurance Company Australian Branch t/as Liberty Specialty Markets v Icon Co (NSW) Pty Ltd [2021] FCAFC 126 Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633 Mattinson v Multiplo Incubators Pty Ltd [1977] 1 NSWLR 368 Maurice v Goldsborough Mort & Co [1939] AC 452 Maxitherm Boilers Pty Ltd v Pacific Dunlop Ltd [1998] 4 VR 559; (1997) 10 ANZ Insurance Cases ¶61-393 McCann v Switzerland Insurance Australia Limited [2000] HCA 65; (2000) 203 CLR 579 McVeigh v National Australia Bank Ltd (2000) 278 ALR 429 Metropolitan Gas Co v Federated Gas Employees' Industrial Union (1925) 35 CLR 449 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104 Onley v Catlin Syndicate Ltd as Underwriting Member of Lloyd's Syndicate (2018) 360 ALR 92 Pacific Dunlop Limited v Maxitherm Boilers Proprietary Limited [1996] VicSC 387; (1997) 9 ANZ Insurance Cases ¶61-357 Quintis Ltd v Certain Underwriters at Lloyd's London (2021) 385 ALR 639 Rainy Sky SA v Kookmin Bank [2011] 1 WLR 2900 Ramco (UK) Ltd v International Insurance Co of Hanover [2004] EWCA Civ 675; All ER (D) 406 Re Sigma Finance Corp (in administrative receivership) [2010] 1 All ER 571 Richmond v Moore Stephens Adelaide Pty Ltd [2015] SASCFC 147 Robbins v Federal Commissioner of Taxation (1974) 129 CLR 332 The North British and Mercantile Insurance Co v Moffatt (1871) LR 7 CP 25 Tubemakers of Australia Ltd v Newcastle Pipe Line Co Ltd (Unreported, NSWCA, Samuels, Mahoney and Clarke JJA, 23 December 1987) Waters v Monarch Fire and Life Assurance Co [1843-60] All ER Rep 654; (1856) 119 ER 705; (1856) 5 El & Bl 870 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522 Derrington DK & Ashton RS, The Law of Liability Insurance (3rd ed, LexisNexis, 2013) Eggers PM, Picken S & Foss P, Good Faith and Insurance Contracts (3rd ed, Lloyd's List, 2010) Herzfeld P, Prince T and Tully S, Interpretation and Use of Legal Sources (2nd ed, Thomson Reuters, 2013) Heydon JD, Heydon on Contract (Thomson Reuters, 2019) Legh-Jones N, Birds J and Owen D, MacGillivray on Insurance Law (11th ed, Sweet & Maxwell, 2008) Lewison K, The Interpretation of Contracts (6th ed, Sweet & Maxwell, 2020)