Worth v HDI Global Specialty SE [2021] NSWCA 185

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Worth v HDI Global Specialty SE [2021] NSWCA 185 Hearing dates: 19 and 20 November 2020 Date of orders: 26 August 2021 Decision date: 26 August 2021 Before: Macfarlan JA at [1]; Meagher JA at [7]; McCallum JA at [204] Decision: (1) Allow the appeal. (2) Set aside Order (1) made on 19 March 2020 and Orders (1) to (4) made on 17 April 2020. (3) Judgment for the appellant against the respondent for the sum of $464,384, together with interest pursuant to Insurance Contracts Act 1984 (Cth) s 57, from 1 January 2016 to 26 August 2021 of $124,649, and $60.39 per day until the date of payment. (4) Dismiss the cross-claim. (5) Order the respondent to pay the appellant's costs at first instance and on appeal. (6) Direct the appellant within 14 days of today's date to file a written submission providing her calculation of the interest to be awarded to her, with the respondent to file any differing calculation within 7 days thereafter. Catchwords: INSURANCE – where appellant's house destroyed in a fire – where house used to operate a business – where house and business insured by respondent – where respondent granted conditional indemnity under deed of release – where respondent then denied liability on basis fire deliberately lit by insured – whether primary judge erred in finding appellant deliberately started fire INSURANCE – measure of indemnity – where lack of reasonable despatch in rectifying property – whether indemnity for property damage payable on reinstatement basis INSURANCE – damages – whether damages available for consequential loss arising from insurer's breach of promise to indemnify – whether damages available for inconvenience and distress caused by breach Legislation Cited: Enterprise Act 2016 (UK), s 28 Evidence Act 1995 (NSW), s 140(2) Insurance Contracts Act 1984 (Cth), ss 13, 14(1), 57 Cases Cited: Apostolos Konstantine Ventouris v Trevor Rex Mountain (The Italia Express (No 2)) [1992] 2 Lloyd's Rep 281 Archibald v Powlett (2017) 53 VR 645; [2017] VSCA 259 Baltic Shipping Company v Dillon (1993) 176 CLR 344 Belhaven and Stenton Peerage (1875) 1 App Cas 278 Bradshaw v McEwans Pty Ltd (1951) 217 ALR 1 Brescia Furniture Pty Ltd v QBE Insurance (Australia) Ltd (2007) 14 ANZ Ins Cas 61-740; [2007] NSWSC 598 Briginshaw v Briginshaw (1938) 60 CLR 336 Browne v Dunn (1893) 6 R 67 (HL) Chamberlain v The Queen (No 2) (1984) 153 CLR 521 CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384; [1997] HCA 2 CIC Insurance Ltd v Bankstown Football Ltd [1994] NSWCA 359; (1995) 8 ANZ Ins Cas 61-232 Globe Church Incorporated v Allianz Australia Insurance Ltd (2019) 99 NSWLR 470; [2019] NSWCA 27 Hungerfords v Walker (1989) 171 CLR 125 Judd & Judd v Suncorp Insurance & Finance (1988) 5 ANZ Ins Cas 60-832 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361; [2011] HCA 11 Mandrake Holdings Ltd v Countrywide Assured Groud Plc [2005] EWCA Civ 840 Maxwell v Highway Hauliers Pty Ltd (2013) 45 WAR 296; [2013] WASCA 115 Moore v Scenic Tours Pty Ltd (2020) 268 CLR 326; [2020] HCA 17 Morrison v Jenkins (1949) 80 CLR 626 Moss v Sun Alliance Australia Ltd (1990) 55 SASR 145 Oakland Investments (Aus) Ltd v Certain Underwriters at Lloyd's [2012] QSC 6; (2012) 17 ANZ Ins Cas 61-932 Palmer v Dolman [2005] NSWCA 361 President of India v Lips Maritime Corp [1988] AC 395 Russell Young Abalone Pty Ltd v Traders Prudent Insurance Co Ltd (1993) 7 ANZ Ins Cas 61-182 Sharma v Insurance Australia Ltd [2017] NSWCA 307 Sprung v Real Insurance (UK) Ltd [1999] 1 Lloyd's IR 111 Tropicus Orchids Flowers and Foliage Pty Ltd v Territory Insurance Office (1998) 148 FLR 441 Versloot Dredging BV v HDI Gerling Industrie Versicherung AG [2017] AC 1; [2016] UKSC 45 Vines v Australian Securities and Investments Commission (2007) 73 NSWLR 451; [2007] NSWCA 75 Zoneff v R (2000) 200 CLR 234; [2000] HCA 28 Category: Principal judgment Parties: Kim Michelle Worth (Appellant) HDI Global Specialty SE (formerly International Insurance Company of Hannover SE) (Respondent) Representation: Counsel: T Castle SC and P Mann (Appellant) S Donaldson SC and N Olsen (Respondent)