BCC Trade Credit Pty Ltd v Thera Agri Capital No 2 Pty Ltd [2023] NSWCA 20

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: BCC Trade Credit Pty Ltd v Thera Agri Capital No 2 Pty Ltd [2023] NSWCA 20 Hearing dates: 26 October 2022 Date of orders: 20 February 2023 Decision date: 20 February 2023 Before: Macfarlan JA at [1]; White JA at [27]; Basten AJA at [58]. Decision: Appeal dismissed with costs. Catchwords: INSURANCE –whether the claim involved an "insured risk" – whether primary judge erred in the construction of insurance policy – whether primary judge erred in finding respondent entitled to indemnity under insurance policy issued by appellant. INSURANCE – trade credit insurance – policy insured advances for purchase of commodities under Murabaha finance agreement – non-compliance with Murabaha finance agreement – whether "insured risk" eventuated when third party and guarantor failed to honour "Debt Obligation(s)" Legislation Cited: Insurance Contracts Act 1984 (Cth), s 54 Cases Cited: Australian Broadcasting Commission v Australian Performing Right Association Ltd (1973) 129 CLR 99 Brotherton v Aseguradora Colseguros SA (No 2) [2003] Lloyd's Rep IR 746 Canning v Farquhar (1886) 16 QBD 727 Codelfa Construction Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337; [1982] HCA 24 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544; [2017] HCA 12 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Equuscorp Pty Ltd v Glengallan Investments (2004) CLR 471; [2004] HCA 55 Gibb v Federal Commissioner of Taxation (1966) 118 CLR 628; [1966] HCA 74 Halford v Price (1960) 105 CLR 23; [1960] HCA 38 Kelly v The Queen (2004) 218 CLR 216; [2004] HCA 12 Liberty Mutual Insurance Company Australian Branch (t/as Liberty Specialty Markets) v Icon Co (NSW) Pty Ltd [2021] FCAFC 126; (2021) 154 ACSR 126 McCann v Switzerland Insurance Australia Limited (2000) 203 CLR 579; [2000] HCA 65 MGICA Ltd v United City Merchants (Australia) Ltd (1986) 4 ANZ Insurance Cases 60-729 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Onley v Catlin Syndicate Ltd (as the underwriting member of Lloyd's Syndicate 2003) (2018) 360 ALR 92; [2018] FCAFC 119 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35 Prepaid Services Pty Ltd v Atradius Credit Insurance NV [2013] NSWCA 252 Prime Forme Cutting Pty Ltd v Baltica General Insurance Co Ltd (1991) 6 ANZ Insurance Cases 61-028 Segelov v Ernst & Young Services Pty Ltd (2015) 89 NSWLR 431; [2015] NSWCA 156 Summerton v SGIC Life Ltd (1999) 10 ANZ Insurance Cases 90-102 Vincent Nominees Pty Ltd v Western Australian Planning Commission [2012] WASC 28; 187 LEGRA 303 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Texts Cited: Lewison and Hughes, The Interpretation of Contracts in Australia (Law Book Co, 2012) Heydon D, Heydon on Contract (Thomson Reuters, 2019) Category: Principal judgment Parties: BCC Trade Credit Pty Ltd (Appellant) Thera Agri Capital No 2 Pty Ltd (Respondent) Representation: Counsel: Mr J T Gleeson SC / Ms A Horvath SC / Mr L G Moretti (Appellant) Mr I M Jackman SC / Mr J D Byrnes (Respondent)