Transfield Pty Limited v National Vulcan Engineering Insurance Group Limited & Ors Connell Wagner Pty Ltd v National Vulcan Engineering Insurance Group Ltd & Ors [2002] NSWSC 830

Reported Decision : (2003) 12 ANZ Insurance Cases 61-547

New South Wales Supreme Court

CITATION : Transfield Pty Limited v National Vulcan Engineering Insurance Group Limited & Ors Connell Wagner Pty Ltd v National Vulcan Engineering Insurance Group Ltd & Ors [2002] NSWSC 830 CURRENT JURISDICTION: Equity Division Commercial List FILE NUMBER(S) : SC 50093/02; 50094/02 HEARING DATE(S) : 19 August 2002 JUDGMENT DATE : 17 September 2002

Transfield Pty Limited (Pltf) Connell Wagner Pty Limited (Pltf) PARTIES : Coffey Partners National Vulcan Engineering Insurance Group Limited (1D) Assicurazioni Generali SpA (2D) Gordian Runoff Limited (3D) JUDGMENT OF : McClellan J

M A Pembroke SC/TM Faulkner (Pltf - Transfield) COUNSEL : J Sexton SC (Pltf - Connell Wagner) F Corsaro SC/A Ridley (Coffey Partners) A J Sullivan QC/D S Weinberger (Def) Holding Redlich (Pltf - Transfield) SOLICITORS : Arnold Bloch Leibler (Pltf - Connell Wagner) Minter Ellison (Coffey Partners) Moray & Agnew (1D, 2D & 3D) CATCHWORDS : INSURANCE - policy covered subsidiary companies and subcontractors - construction of policy - effect of an exclusions clause and cross liability clause - election - whether insurer elected to grant indemnity by reason of its conduct Stolberg v Pearl Assurance Co Ltd (1971) 19 DLR (3d) 343 Weightman v Noosa Shire Council [1999] QSC 368 Federation Insurance Ltd v Wasson (1987) 163 CLR 303 General Accident Fire and Life Assurance Corporation Ltd v Midland Bank Ltd [1940] 2 KB 388 Re FAI General Insurance Co Ltd & Fletcher Construction Ltd (1988) 10 ANZ Ins Cas 61-403 Speno Rail Maintenance Australia Pty Ltd v Hamersley Iron Pty Ltd (2000) 23 WAR 291 McCann v Switzerland Insurance Australia Limited (2000) 75 ALJR 325 Hi-fert Pty Ltd v Unisea Shipping Adriatic Inc (1998) 165 ALR 265 Dovuro Pty Ltd v Wilkins (2000) 105 FCR 476 Re Strand Music Hall Co Limited ex parte European & American Finance Co Ltd (1865) 35 Beav 153 Workcover Queensland v Royal & Sun Alliance Insurance Australia Ltd (2001) 11 ANZ Ins Cas 61-489 Wadsley v City Mutual Life Assurance Society Ltd [1971] VR 140 CASES CITED : Romay Automotive Ltd v Dominion of Canada General Insurance Co (1974) 43 DLR (3d) 346 Re Vergata et al and Manitoba Public Insurance Corp (1976) 67 DLR (3d) 527 Hartford Fire Insurance Co v Saskatchewan Mutual Insurance Co (1967) 59 DLR (2d) 649 V L Credits Pty Ltd v Switzerland Insurance Co Ltd [1990] VR 938 Fletcher Organisation Pty Ltd v CML Fire and General Insurance Co Ltd (1987) 4 ANZ Ins Cas 60-805 C E Heath Underwriting & Insurance (Aust) Pty Ltd v Edwards Dunlop & Co Ltd (1992-1993) 176 CLR 535 Sargent v ASL Developments Ltd (1974) 131 CLR 634 Commonwealth v Verwayen (1990) 170 CLR 394 C E Heath Underwriting & Insurance (Aust) Pty Ltd v Campbell Wallis Moule & Co Pty Ltd [1992] 1 VR 386 Nigel Watts Fashion Agencies Pty Ltd v GIO General Limited (1995) 8 ANZ Ins Cas 61-235 Turner v Labafox International Pty Ltd (1974) 131 CLR 660 Khoury v Government Insurance Office (NSW) (1984) 164 CLR 622 Freshmark Limited v Mercantile Mutual Insurance (Australia) Limited (1994) 2 Qd R 390 ACN 007838584 Pty Ltd v Zurich Australian Insurance Ltd (1997) 69 SASR 374 DECISION : See para 90