Absolute Tiling Solutions Pty Ltd v Certain Underwriters at Lloyds [2024] NSWSC 364

Supreme Court New South Wales

Medium Neutral Citation: Absolute Tiling Solutions Pty Ltd v Certain Underwriters at Lloyds [2024] NSWSC 364 Hearing dates: 12-15 February 2024, 19 February 2024, 13 March 2024 Date of orders: 10 April 2024 Decision date: 10 April 2024 Jurisdiction: Equity - Commercial List Before: Nixon J Decision: See [472] Catchwords: INSURANCE – professional indemnity insurance – plaintiff was design and construct contractor – claim made relating to external sandstone tiling designed and installed by plaintiff – insured activities included design but not installation – whether the liability resulted from the design or installation of the tiling system INSURANCE – professional indemnity policy underwritten by first defendant for three consecutive years – exclusion clause in respect of prior known circumstances – whether failure to disclose prior known circumstances – consequences of failure to disclose prior known circumstances after entry into the first of the three consecutive policies – application of continuous cover provision – application of ss 21 and 28 of the Insurance Contracts Act 1984 (Cth) INSURANCE – whether plaintiff failed to comply with s 21 of the Insurance Contracts Act 1984 by failure to disclose that plaintiff performed external tiling or cladding works – whether the first defendant would have entered into policy if relevant failure had not occurred INSURANCE – construction of contract of insurance – exclusion clauses INSURANCE – brokers – claims for negligence and misleading or deceptive conduct – premises for claims not established BUILDING AND CONSTRUCTION – scope of rectification works – cost of rectification works Legislation Cited: Civil Liability Act 2002 (NSW), s 5D Home Building Act 1989 (NSW), ss 18B, 18G Insurance Contracts Act 1984 (Cth), ss 21, 28, 40 Cases Cited: AFC Holdings Pty Ltd v Shiprock Holdings Pty Ltd [2010] NSWSC 985 Astley v Austrust Limited (1999) 197 CLR 1; [1999] HCA 6 Beaufort Developments (NI) Ltd v Gilbert-Ash NI Ltd [1999] 1 AC 266 Bellgrove v Eldridge (1954) 90 CLR 613 at 617; [1954] HCA 36 Bowen Investments Pty Ltd v Tabcorp Holdings Ltd (2008) 166 FCR 494; [2008] FCAFC 38 Brewarrina Shire Council v Beckhaus Civil Pty Ltd [2006] NSWCA 361 CGU Insurance Limited v Porthouse (2008) 235 CLR 103; [2008] HCA 30 CIMIC Group Limited v AIG Group Limited [2022] NSWSC 999 Classics for a Cause Pty Ltd v Grays Ecommerce Group Ltd [2023] NSWSC 967 DIF III – Global Co Investment Fund LP v DIF Capital Partners Ltd [2020] NSWCA 124 Electricity Generation Corp v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 FAI General Insurance Co Ltd v McSweeney (1999) 10 ANZ Insurance Cases ¶61-443 Fishwives Pty Ltd v FAI General Insurance Co Ltd [2001] NSWCA 193 Hakea Holdings Pty Ltd v Neon Underwriting Ltd [2023] FCAFC 34 HDI Global Speciality SE v Wonkana No 3 Pty Ltd [2020] NSWCA 296 Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd (2013) 247 CLR 613; [2013] HCA 10 Karenlee Nominees Pty Ltd v CAN 004 312 234 Ltd (1995) 8 ANZ Ins Cas 61–236 Kiriacoulis Lines SA v Cie d'Assurances Maritime Aeriennes et Terrestres [2002] 1 Lloyds's Rep IR 795 Lake v Simmons [1927] AC 487 Lasermax Engineering Pty Ltd v QBE Insurance (Aust) Ltd [2005] NSWCA 66 Legal & General Insurance Australia Limited v Eather (1986) 6 NSWLR 390 Liberty Mutual Insurance Company Australian Branch t/as Liberty Specialty Markets v Icon Co (NSW) Pty Ltd (2021) 396 ALR 193; [2021] FCAFC 126 Malamit Pty Ltd v WFI Insurance Ltd [2017] NSWCA 162 McCarthy v St Paul International Insurance Co Ltd (2007) 157 FCR 402; [2007] FCAFC 28 New Cap Reinsurance Corporation Limited (in liq) v Daya [2010] NSWSC 1226 Permanent Trustee Australia Ltd v FAI General Insurance Co Ltd (In Liq) (2003) 214 CLR 514; [2003] HCA 25 Prepaid Services Pty Ltd v Atradius Credit Insurance [2013] NSWCA 252 RAA-GIO Insurance Ltd v O'Halloran (2007) 98 Roberts v Goodwin Street Developments Pty Ltd [2023] NSWCA 5 SASR 123; [2007] SASC 245 Samways v Workcover Queensland [2010] QSC 128 Sheehan v Lloyds Names Munich Re Syndicate Ltd [2017] FCA 1340 Star Entertainment Group Ltd v Chubb Insurance Australia Ltd (2022) 400 ALR 25; [2022] FCAFC 16 State of New South Wales v Tempo Services Ltd [2004] NSWCA 4 Stealth Enterprises Pty Ltd t/as The Gentlemen's Club v Calliden Insurance Limited [2017] NSWCA 71 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272; [2009] HCA 8 AMRO Bank NV v Bathurst Regional Council [2014] FCAFC 65; (2014) 224 FCR 1 Todd v Alterra at Lloyd's Limited (2016) 239 FCR 12; [2016] FCAFC 15 Wayne Tank & Pump Co Ltd v Employers Liability Assurance Corp Ltd [1974] QB 57 Weir Services Australia Pty Ltd v AXA Corporate Solutions Assurance (2018) 359 ALR 314; [2018] NSWCA 100 XL Insurance Co SE v BNY Trust Company of Australia Ltd [2019] NSWCA 215 Zurich Australian Insurance Ltd v Regal Pearl Pty Ltd [2006] NSWCA 328 Texts Cited: DK Derrington KC and RS Ashton, The Law of Liability Insurance (3rd ed, 2013, LexisNexis Butterworths) Category: Principal judgment Parties: Absolute Tiling Solutions Pty Ltd (Plaintiff) Certain Underwriters at Lloyd's subscribing to a policy of insurance (First Defendant) Coverforce Insurance Broking Pty Ltd (Second Defendant) Action Insurance Brokers Pty Ltd (Third Defendant) Sang Jo Moon aka Charles Moon (Fourth Defendant) Representation: Counsel: F C Corsaro SC with B Le Plastrier (Plaintiffs) C J Peadon with H Cooper (First Defendant) S R Donaldson SC with D Wong (Second Defendant) M S White SC with N Riordan (Third and Fourth Defendant)