Baralaba Coal Company Pty Ltd v AAI Ltd trading as Vero Insurance [2024] FCA 532

Federal Court of Australia

Baralaba Coal Company Pty Ltd v AAI Ltd trading as Vero Insurance [2024] FCA 532 File number: QUD 137 of 2023

Judgment of: DERRINGTON J

Date of judgment: 23 May 2024

Catchwords: INSURANCE – industrial special risks policy – indemnity for cost of reinstatement or repair of damage to property – property damaged by storm – further damage sustained to property during repairs and after expiry of policy – question of extent of the insurers' obligation to indemnify – liability for subsequent damage – declaratory relief granted

Cases cited: CIC Insurance Ltd v Bankstown Football Club Ltd (1995) 8 ANZ Insurance Cases ¶61-232 CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500 Government Insurance Office of New South Wales v Atkinson-Leighton Joint Venture (1981) 146 CLR 206 Kelly v The National Insurance Company of New Zealand Ltd (1995) 8 ANZ Insurance Cases ¶61-239 Lend Lease Real Estate Investments Ltd v GPT RE Ltd [2006] NSWCA 207 Lumley General Insurance Ltd v Vintix Pty Ltd (1991) 24 NSWLR 652 Prestige Form Group NSW Pty Ltd v QBE European Operations PLC [2023] FCA 749 Quantum Processing Services Co v Axa Insurance UK Plc [2008] All ER (D) 152 R v Khazaal (2012) 246 CLR 601 Smith v Colonial Mutual Fire Insurance Co Ltd (1880) 6 VLR (L) 200 Woodlawn Capital Pty Ltd v Motor Vehicles Insurance Ltd (2016) 111 ACSR 377 Desmond Derrington and Ronald Ashton, The Law of Liability Insurance (LexisNexis Butterworths, 3rd ed, 2013) Ian Enright and Robert Merkin, Sutton on Insurance Law (Thomson Reuters, 4th ed, 2014)