SunWater Limited v Liberty Mutual Insurance Company [2022] NSWCA 273

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: SunWater Limited v Liberty Mutual Insurance Company [2022] NSWCA 273 Hearing dates: 29 August 2022 Date of orders: 16 December 2022 Decision date: 16 December 2022 Before: Bell CJ at [1]; Macfarlan JA at [2]; Meagher JA at [82] Decision: Appeal dismissed, with costs. Catchwords: INSURANCE — liability insurance — exclusions — whether liability arose out of the rendering of or failure to render professional advice or service for a fee – whether SunWater itself rendered professional advice or service — act of subordinate was act of SunWater — whether exclusion confined to liability to client or extended to liability to third parties – whether exclusion clause excessively circumscribed cover if interpreted as insurers contended Cases Cited: Central Coast Council v Norcross Pictorial Calendars Pty Ltd (2021) 391 ALR 157; [2021] NSWCA 75 Darling Island Stevedoring and Lighterage Co Ltd v Long (1957) 97 CLR 36; [1957] HCA 26 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500; [1986] HCA 82 Drexel London (a firm) v Gove (Blackman) [2009] WASCA 181 Fitzpatrick v Job t/as Jobs Engineering [2007] WASCA 63 HDI Global Specialty SE v Wonkana No.3 Pty Ltd (2020) 104 NSWLR 634; [2020] NSWCA 296 IBM Australia Ptd v National Distribution Services Ltd (1991) 22 NSWLR 466 Kable v New South Wales [2012] NSWCA 243 Legal & General Insurance v Eather (1986) 6 NSWLR 390 Limit (No 3) Ltd v ACE Insurance Ltd [2009] NSWSC 514 Optus Administration Pty Ltd v Wright (2017) 94 NSWLR 229; [2017] NSWCA 21 Pioneer Mortgage Services v Columbus Capital (2016) 250 FCR 136; [2016] FCAFC 78 Prince Alfred College Incorporated v ADC (2016) 258 CLR 134; [2016] HCA 37 Rava v Logan Wines Pty Ltd [2007] NSWCA 62 Rodriguez & Sons Pty Ltd v Queensland Bulk Water Supply Authority trading as Seqwater (No 22) [2019] NSWSC 16 Transfield Services (Australia) v Hall; Hall v QBE Insurance (Australia) [2008] NSWCA 294 Vero Insurance Ltd v Power Technologies Pty Ltd [2007] NSWCA 226 Weir Services Australia Pty Ltd v AXA Corporate Solutions Assurance (2018) 359 ALR 256; [2018] NSWCA 100 Category: Principal judgment Parties: SunWater Limited (Appellant) Liberty Mutual Insurance Company, Australia Branch (First Respondent) Underwriting Members of Lloyds Syndicate 0386 DAC (Second Respondent) QBE Insurance (Europe) Limited (Third Respondent) QBE Insurance (Australia) Limited (Fourth Respondent) Underwriting Members of Lloyd's Syndicate 1218 ODY (Fifth Respondent) Underwriting Members of Lloyd's Syndicate 2468 MFM (Sixth Respondent) Underwriting Members of Lloyd's Syndicate 1225 AES (Seventh Respondent) Certain Underwriters and Lloyd's and Co-Insurers subscribing to Policy No. 509/DR442210(2) (Eighth Respondent) Zurich Australia Insurance Limited (Ninth Respondent) XL Insurance Company SE (Tenth Respondent) Great Lakes Insurance SE, as Societas Europea incorporated in Germany trading as Great Lakes Australia (Eleventh Respondent) Insurance Australia Limited trading as CGU Insurance Limited (Twelfth Respondent) Chubb Insurance Australia Limited (Thirteenth Respondent) AAI Limited trading as Vero Insurance Limited (Fourteenth Respondent) Allianz Australia Insurance Limited (Fifteenth Respondents) Representation: Counsel: J Sheahan QC, N Kidd, J Dooley (Appellant) MJ Darke SC, GES Ng, RA Jedrzejcyzyk (First Respondent) EC Muston SC, MF Newtown (Second and Third Respondents)