National Vulcan & Ors v Transfield; National Vulcan & Ors v Connell Wagner; National Vulcan & Ors v Coffey Partners International [2003] NSWCA 327

Reported Decision : 59 NSWLR 119 (2004) 13 ANZ Insurance Cases 61-595

New South Wales Court of Appeal

CITATION : National Vulcan & Ors v Transfield; National Vulcan & Ors v Connell Wagner; National Vulcan & Ors v Coffey Partners International [2003] NSWCA 327 HEARING DATE(S) : 1 August 2003 JUDGMENT DATE : 11 November 2003

JUDGMENT OF : Santow JA at 1; Ipp JA at 69; Young CJ in Eq at 70 DECISION : (1) Appellants' appeal dismissed; (2) Cross-appeal by Transfield Pty Limited dismissed; (3) Subject to 5 below, the appellants to pay the respondents' costs of the appeal; (4) Subject to 5 below, Transfield to pay the cross-respondents' costs of the cross-appeal; (5) The above cost orders are deferred from coming into effect for fourteen days should any party wish to make submissions in regard to costs as the matter of costs was not addressed upon the appeal or in the written submissions.

CATCHWORDS : INSURANCE - exclusions under policy for damage to property owned by the insured - is the exclusion relevant where a subcontractor's property is damaged by another party covered under the same insurance contract - did the insurers make a binding election to indemnify the head contractor by way of correspondence CE Heath Underwriting & Insurance (Aust) Pty Ltd v Edwards Dunlop & Co Ltd (1993) 176 CLR 535 Commonwealth Construction Co Ltd v Imperial Oil Limited (1977) 69 DLR (3d) 558 Darlington Futures Ltd v Delco Australia Pty Limited (1986) 161 CLR 500 Glebe Island Terminals Pty Limited v Continental Seagram Pty Ltd (1993) 40 NSWLR 206 Re FAI General Insurance Co Ltd & Fletcher Construction Ltd (1998) 10 ANZ Ins Cas 61-403 Federation Insurance Ltd v Wasson (1987) 163 CLR 303 Ferguson v Miller [1978] 1 NZLR 819 Freshmark Ltd v Mercantile Mutual Insurance (Australia) Ltd [1994] 2 Qd R 390 Generals Accident Fire and Life Assurance Corporation Ltd v Midland Bank Ltd [1940] 2 KB 388 CASES CITED : Griffies v Griffies (1863) 8 LT 758 Kodak (Australasia) Pty Ltd v Retail Traders Mutual Indemnity Insurance Association (1942) 42 SR(NSW) 231 McCann v Switzerland Insurance Australia Limited (2000) 75 ALJR 325 Murray v Hall (1849) 7 CB 441 Nigel Watts Fashion Agencies Pty Ltd v GIO General Ltd (1995) 8 ANZ Ins Cas 61-235 Romay Automotive Ltd v Dominion of Canada General Insurance Co (1974) 43 DLR(3d) 346 Speno Rail Maintenance Australia Pty Ltd v Hamersley Iron Pty Ltd (2000) 23 WAR 291 Stolberg v Pearl Assurance Co Ltd (1971) 19 DLR(3d) 343 Re Vergata et al v Manitoba Public Insurance Corporation (1976) 67 DLR(3d) 527 Weightman v Noosa Shire Council [1999] QSC 368 WorkCover Queensland v Royal & Sun Alliance Insurance Australia Ltd (2001) 11 ANZ Ins-Cas 61-489 CA 40927/02: National Vulcan Engineering Insurance Group Limited (First Appellant/First Cross-Respondent) Assicurazioni Generali SpA (Second Appellant/Second Cross-Respondent) Gordian Runoff Limited (formerly known as GIO Insurance Limited) (ACN 052 179 647) (Third Appellant/Third Cross-Respondent) Transfield Pty Limited (Respondent/Cross-Appellant)