HDI Global Specialty SE v Wonkana No. 3 Pty Ltd [2020] NSWCA 296

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: HDI Global Specialty SE v Wonkana No. 3 Pty Ltd [2020] NSWCA 296 Hearing dates: 2 October 2020 Decision date: 18 November 2020 Before: Bathurst CJ; Bell P; Meagher JA; Hammerschlag J; Ball J Decision: (1) Summons dismissed. (2) Declarations that: (a) On the proper construction of the "Tourist Parks & Lifestyle Villages Insurance Policy" issued by the first plaintiff to the first, second, and third defendants for the cover period 28 February 2020 to 28 February 2021, COVID-19 is not a disease declared to be a quarantinable disease under the Quarantine Act 1908 (Cth) and the exclusion in the HDI Disease Benefit is not enlivened. (b) On the proper construction of the "Business Insurance Policy" issued by the second plaintiff to the fourth defendant for the cover period 11 May 2019 to 11 May 2020, COVID-19 is not a disease declared to be a quarantinable disease under the Quarantine Act 1908 (Cth) and the exclusion in the Hollard Disease Cover is not enlivened. (3) Cross-claim is otherwise dismissed. Catchwords: CONTRACTS – Construction – Interpretation – Where exclusion clause in insurance policy referred to particular legislation "and subsequent amendments" – Whether replacement legislation a "subsequent amendment" CONTRACTS – Construction – Principles – Correction of mistakes by construction – Where policy includes a reference to repealed legislation – Whether parties may be taken to have known of repeal and replacement of repealed legislation as part of surrounding circumstances – Whether reference absurd or clear mistake – Whether reference to be construed as reference to replacement legislation in light of surrounding circumstances Legislation Cited: Acts Interpretation Act 1901 (Cth) Biosecurity Act 2015 (Cth) Biosecurity (Consequential Amendments and Transitional Provisions) Act 2015 (Cth) Biosecurity (Listed Human Diseases) Amendment Determination 2020 Biosecurity (Listed Human Diseases) Determination 2016 Quarantine Act 1908 (Cth) Quarantine Proclamation 1998 (Cth) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Allianz Australia Insurance Ltd v Inglis [2016] WASCA 25 Arnold v Britton [2015] AC 1619; [2015] UKSC 36 Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441 Attorney-General of Western Australia v Marquet (2003) 217 CLR 545; [2003] HCA 67 Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99; [1973] HCA 36 Australian Casualty Co Ltd v Federico (1986) 160 CLR 513; [1986] HCA 32 Bache v Proctor (1780) 99 ER 247; 1 Dougl 384 Big River Timbers Pty Ltd v Stewart [1999] NSWCA 34 Bowes v Chaleyer (1923) 32 CLR 159; [1923] VLR 295 Chartbrook Ltd v Persimmon Homes Ltd [2009] 1 AC 1101; [2009] UKHL 38 Charter Reinsurance Co Ltd v Fagan [1997] AC 313 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337; [1982] HCA 23 Cornish v Accident Insurance Co Ltd (1889) 23 QBD 453 Dairy Containers Ltd v Tasman Orient Line CV [2005] 1 WLR 215 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500 East v Pantiles Plant Hire Ltd (1981) 263 EG 61 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 218 CLR 471; [2004] HCA 55 Fitzgerald v Masters (1956) 95 CLR 420; [1956] HCA 53 Gissing v Gissing [1971] AC 886 Halford v Price (1960) 105 CLR 23; [1960] HCA 38 Homburg Houtimport BV v Agrosin Private Ltd (The Starsin) [2004] 1 AC 715 Impact Funding Solutions Ltd v AIG Europe Insurance Ltd [2017] AC 73; [2016] UKSC 57; [2016] 3 WLR 1422 Inland Revenue Commissioners v Raphael [1935] AC 96 Investors Compensation Scheme Ltd v West Bromwich Building Society [1997] UKHL 28; [1998] 1 WLR 896 Johnson v American Home Assurance (1998) 192 CLR 266; [1998] HCA 14 Kawarau Village Holdings Ltd v Ho [2018] 1 NZLR 378; [2017] NZSC 150 KPMG LLP v Network Rail Infrastructure Ltd [2007] Bus LR 1336 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181; [2001] HCA 70 Mainteck Services Pty Ltd v Stein Heurtey SA (2015) 89 NSWLR 633; [2014] NSWCA 184 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579; [2000] HCA 65 McHugh Holdings Pty Ltd v Newtown Colonial Hotel (2008) 73 NSWLR 53; [2008] NSWSC 542 Miwa Pty Ltd v Siantan Properties Pte Ltd [2011] NSWCA 297 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 National Australia Bank Ltd v Clowes [2013] NSWCA 179 Noon v Bondi Beach Astra Retirement Village Pty Ltd [2010] NSWCA 202 Pacific Carriers Limited v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35 Phillips v Rafiq [2007] EWCA Civ 74; [2007] 1 WLR 1351 Pink Floyd Music Ltd v EMI Records Ltd [2011] 1 WLR 770; [2010] EWCA Civ 1429 QBE Insurance Australia Ltd v Vasic [2010] NSWCA 166 Rabin v Gerson Berger Association Ltd [1986] 1 WLR 526 Reardon Smith Line v Hansen-Tangen [1976] 1 WLR 989 Risley v Gough [1953] Tas SR 78 Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (In liquidation) (2019) 99 NSWLR 317; [2019] NSWCA 11 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Westpac Banking Corporation v Tanzone Pty Ltd (2000) 9 BPR 17; [2000] NSWCA 25 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Wilson v Wilson (1854) 10 ER 811; 5 HL Cas 40 Wood v Capita Insurance Services Ltd [2017] AC 1173; [2017] UKSC 24 Zhang v ROC Services (NSW) Pty Ltd (2016) 93 NSWLR 561; [2016] NSWCA 370 Zhu v Treasurer of the State of New South Wales (2004) 218 CLR 530; [2004] HCA 56 Texts Cited: Explanatory Memorandum to the Biosecurity Bill 2014 Halsbury's Laws of England (Butterworth & Co, 3rd ed, 1958) vol 22 J D Heydon, Heydon on Contract (2019, Lawbook) Category: Principal judgment Parties: HDI Global (First Plaintiff/First Cross-Defendant) The Hollard Insurance Company Pty Ltd (Second Plaintiff/Second Cross-Defendant) Wonkana No. 3 Pty Ltd trading as Austin Tourist Park (First Defendant/First Cross-Claimant) F A Edwards (Second Defendant/Second Cross-Claimant) C H Edwards (Third Defendant/Third Cross-Claimant) Key Holding and Investments Pty Ltd as The Trustee for Key Nutrition Unit Trust trading as Thrive Health and Nutrition (Fourth Defendant/Fourth Cross-Claimant) Representation: Counsel: B W Walker SC with T W Marskell (Plaintiffs/Cross-Defendants) J C Sheahan QC with D T W Wong (Defendants/Cross-Claimants)