Univers Carpet Wholesalers Pty Limited v QBE Insurance (Australia) Limited [2008] NSWDC 6

New South Wales District Court

CITATION: Univers Carpet Wholesalers Pty Limited v QBE Insurance (Australia) Limited [2008] NSWDC 6

HEARING DATE(S): 29/01/08 - 30/01/08

JUDGMENT DATE: 8 February 2008

JURISDICTION: Civil

JUDGMENT OF: Rolfe DCJ

DECISION: 1. Verdict and Judgment for the plaintiff against the Defendant in the sum of $90,779.65. 2. Exhibits to be returned to the parties.

CATCHWORDS: Defective Product used in carpet laying process - Claim under Occurrence-Based Insurance Policy - Determination as to whether property damage occurred whilst policy on foot

LEGISLATION CITED: Corporation Act 2001

CASES CITED: AXA Global Risks (UK) Ltd v Hoskins Contractors Pty Ltd (2004) ANZ Insurance Cases 611 para 25

PARTIES: Univers Carpet Wholesalers Pty Limited (Plaintiff) QBE Insurance (Australia) Limited (Defendant)

FILE NUMBER(S): 2392/06

COUNSEL: P J O'Connor (Plaintiff) A Lo Surdo (Defendant)

JUDGMENT

1 Carson Adhesives Pty Limited ("Carson") manufactured and sold the product known as Edgeseal Adhesive 1704 Supertac (the "Product"). The Product was used as an adhesive or glue in the process of carpet laying.

2 The plaintiff supplies and installs carpets. Between April 2000 and November 2000 the plaintiff purchased the Product from Carson and used it in the laying of carpet at certain commercial sites.

3 Mr Fiszman is the managing director of the plaintiff. In his affidavit sworn on 11 December 2006 (part of Exhibit A), Mr Fiszman said that in the late 1980's a method of commercial carpet laying known as the dual bond method was introduced. This involved the use of an adhesive to fix carpet underlay to flooring which was usually made of concrete, particleboard or masonite. The adhesive was then used again to fix the carpet to the underlay.