Sydney Trains v Argo Syndicate AMA 1200 [2024] NSWCA 101

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Sydney Trains v Argo Syndicate AMA 1200 [2024] NSWCA 101 Hearing dates: 19 April 2024 Decision date: 07 May 2024 Before: Leeming JA at [1]; Payne JA at [169]; Griffiths AJA at [170] Decision: 1. Appeal allowed. 2. Set aside the judgment of the District Court of 15 September 2023 and order 2 as to costs of the same date. 3. Direct the parties to file and serve within 14 days of today agreed orders, or in lieu of agreement, short minutes of order for which each party contends accompanied by submissions not exceeding three pages, as to the amount of the judgment to be entered in favour of Sydney Trains in lieu of the judgment of the District Court, including as to the time at which such judgment should be entered or taken to have been entered. 4. Argo to pay Sydney Trains' costs of the proceedings in the District Court and in this Court. Catchwords: INSURANCE – public liability – Sydney Trains held liable for personal injury sustained by commuter who slipped on tiles installed by insured – insured now deregistered – claim against insurer pursuant to s 601AG of Corporations Act 2001 (Cth) – claim against insurer confined to claim on implied term of contract – whether implied term to provide tiles of adequate slip resistance – whether term was breached – where expert evidence adduced at negligence trial not tendered in trial against insurer – whether inference that tile was of inadequate slip resistance available – whether breach of duty caused commuter to slip – whether evidence at trial established the tiles were wet – whether subsequent decision to reopen stairway broke chain of causation – whether insurance policy responded to claim – whether "occurrence" for purposes of policy was the installation of the tiles or the commuter's personal injury – whether liability covered by policy extended to secondary liability for commuter's personal injury – whether performance warranty exclusion applied Legislation Cited: Civil Liability Act 2002 (NSW), ss 3B, 5, 5A, 5B, 5D, 5O, Pts 1A, 4 Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW), s 4 Compensation to Relatives Act 1897 (NSW) Corporations Act 2001 (Cth), ss 471B, 601AG Evidence Act 1995 (NSW), s 91 Insurance Act 1973 (Cth) Law Reform (Miscellaneous Provisions) Act 1944 (NSW), ss 3, 4 Law Reform (Miscellaneous Provisions) Act 1946 (NSW), ss 5, 6 Law Reform (Miscellaneous Provisions) Act 1965 (NSW), ss 8, 9 Limitation Act 1969 (NSW), s 26 Sale of Goods Act 1923 (NSW), s 19 Transport Administration Act 1988 (NSW), ss 36, 121 Uniform Civil Procedure Rules 2005 (NSW), rr 51.17, 51.29, 51.40 Cases Cited: Aer Lingus plc v Gildacroft Ltd [2006] EWCA Civ 4; [2006] 1 WLR 1173 Agricultural Land Management Ltd v Jackson [No 2] (2014) 48 WAR 1; [2014] WASC 102 Allianz Australia Insurance Ltd v Mercer [2014] TASFC 3; 309 ALR 154 Allianz Australia Insurance Ltd v Waterbrook at Yowie Bay Pty Ltd [2009] NSWCA 224 Almario v Allianz Australia Workers Compensation (NSW) Insurance Ltd (2005) 62 NSWLR 148; [2005] NSWCA 19 Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441 Astley v Austrust Ltd (1999) 197 CLR 1; [1999] HCA 6 Austral Plywoods Pty Ltd v FAI General Insurance Company Ltd [1992] QCA 4; 7 ANZ Ins Cas 61-110 Bailey v New South Wales Medical Defence Union Ltd (1995) 184 CLR 399; [1995] HCA 28 Banque Commerciale SA (en liq) v Akhil Holdings Ltd (1990) 169 CLR 279; [1990] HCA 11 Chappel v Hart (1998) 195 CLR 232; [1998] HCA 55 Dickson Primer Industries Pty Ltd v National Employers' General Insurance Association Ltd [1974] 2 NSWLR 292 Findlay v Westfield Development Corporation Ltd [1972] 1 NSWLR 422 Fitzgerald v Masters (1956) 95 CLR 420; [1956] HCA 53 Gerlach v Clifton Bricks Pty Ltd (2002) 209 CLR 478; [2002] HCA 22 GIO General Ltd v Newcastle City Council (1996) 38 NSWLR 558 Hardwick Game Farm v Suffolk Agricultural Poultry Producers Association [1969] 2 AC 31 Henderson v Merrett Syndicates [1995] 2 AC 145; [1994] UKHL 5 Hewett v Court (1983) 149 CLR 639; [1983] HCA 7 Icon Co (NSW) Pty Ltd v The Owners – Strata Plan No 97315 [2022] NSWCA 114 James Adam Pty Ltd v Fobeza Pty Ltd (2020) 103 NSWLR 850; [2020] NSWCA 311 Karenlee Nominees Pty Ltd v ACN 004 312 234 Ltd (1994) 8 ANZ Ins Cas 61-236 Landon v Ferguson (2005) 64 NSWLR 131; [2005] NSWCA 395 Lexmead (Basingstoke) Ltd v Lewis (sub nom Lambert v Lewis) [1982] AC 225 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579; [2000] HCA 65 Manufacturers Mutual Insurance Ltd v Hooper (1988) 5 ANZ Ins Cas 60-849 QBE Underwriting Ltd as managing agent for Lloyds Syndicate 386 v Southern Colliery Maintenance Pty Ltd (2018) 97 NSWLR 459; [2018] NSWCA 55 R & B Directional Drilling Pty Ltd (in liq) v CGU Insurance Ltd (No 2) [2019] FCA 458; 369 ALR 137 R v Khazaal (2012) 246 CLR 601; [2012] HCA 26 Rheem Australia Ltd v Manufacturers' Mutual Insurance Ltd [1984] 2 NSWLR 370 Scenic Tours Pty Ltd v Moore [2018] NSWCA 238; 361 ALR 456 Slater v Finning Ltd [1997] AC 473 State Government Insurance Office (Queensland) v Crittenden (1966) 117 CLR 412; [1966] HCA 56 Sydney Trains v Argo Syndicate AMA 1200 [2021] NSWDC 685 Sydney Trains v Argo Syndicate AMA 1200 (No 2) [2023] NSWDC 381 Synergy Scaffolding Services Pty Ltd v Alelaimat [2023] NSWCA 213 Taitoko v R [2020] NSWCCA 43 Thiess Bros Pty Ltd v New Zealand Insurance Co Ltd (1968) 13 FLR 3 Transfield Construction Pty Ltd v GIO Australia Holdings Pty Ltd [1996] NSWCA 538; (1997) 9 ANZ Ins Cas 61-336 Walker Group Constructions Pty Ltd v Tzaneros Investments Pty Ltd (2017) 94 NSWLR 108; [2017] NSWCA 27 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Willis Australia Ltd v AMP Capital Investors Ltd [2023] NSWCA 158 Wilson v Wilson (1854) 5 HL Cas 40; 10 ER 811 Winston v Roach [2003] NSWCA 310 Zurich Australian Insurance Ltd v Regal Pearl Pty Ltd [2006] NSWCA 328; 14 ANZ Ins Cas 61-715 Texts Cited: S Crennan and W Gummow, Jesting Pilate (3rd ed, 2019, Federation Press) D Derrington and R Ashton, The Law of Liability Insurance (3rd ed, 2013, LexisNexis) H Hart and T Honoré, Causation in the Law (2nd ed, 1985, Clarendon Press) Category: Principal judgment Parties: Sydney Trains (Appellant) Argo Syndicate AMA 1200 (Respondent) Representation: Counsel: D Weinberger (Appellant) J Catsanos SC, R Perla (Respondent)