QBE Insurance Australia Limited v Allianz Australia Insurance Limited [2020] FCA 589

FEDERAL COURT OF AUSTRALIA

QBE Insurance Australia Limited v Allianz Australia Insurance Limited [2020] FCA 589 File number: NSD 715 of 2019

Judge: ALLSOP CJ

Date of judgment: 6 May 2020

Catchwords: INSURANCE – respective responsibilities of two insurers – construction of two policies of insurance dealing with two construction contracts, a main contract and a subcontract – whether subcontractor an insured under head contractor's policy with Insurer 1 such that the insurer of the subcontractor Insurer 2 is entitled to equitable contribution from Insurer 1 for indemnifying the subcontractor for the settlement including costs – and whether any right to contribution extended to cover defence costs incurred directly by Insurer 2 in the defence of proceedings brought against the subcontractor under a clause providing for a duty to defend and not reimbursement of or indemnification for costs of the insured subcontractor

Legislation: Judiciary Act 1903 (Cth), s 39B(1A)

Cases cited: Albion Insurance Co Limited v Government Insurance Office of New South Wales [1969] HCA 55; 121 CLR 342 Australasian Correctional Services Pty Limited v AIG Australia Limited [2018] FCA 2043 Commercial and General Insurance Company Limited v Government Insurance Office of New South Wales [1973] HCA 51; 129 CLR 374 Government Insurance Office of New South Wales v Crowley [1975] 2 NSWLR 78 Government Insurance Office of New South Wales v QBE Insurance Ltd (1985) 2 NSWLR 543 Government Insurance Office of New South Wales v Royal Exchange Assurance of London (1965) 82 WN (Pt 1) (NSW) 468 HIH Casualty & General Insurance Limited (In Liquidation) v Insurance Australian Limited [2005] VSC 342; (2006) 14 ANZ Ins Cas 61-685 HIH Claims Support Limited v Insurance Australia Limited [2011] HCA 31; 244 CLR 72 Insurance Australia Limited v HIH Casualty & General Insurance Limited (In Liquidation) [2007] VSCA 223; 18 VR 528 Vero Insurance Limited v QBE Insurance (Australia) Limited [2011] NSWSC 593; 16 ANZ Ins Cas 61-912