Orica Limited & Anor v CGU Insurance Limited [2003] NSWCA 331

Reported Decision : 59 NSWLR 14 (2004) 13 ANZ Insurance Cases 61-596

New South Wales Court of Appeal

CITATION : Orica Limited & Anor v CGU Insurance Limited [2003] NSWCA 331 HEARING DATE(S) : 13 May 2003 JUDGMENT DATE : 11 November 2003

JUDGMENT OF : Spigelman CJ at 1; Mason P at 61; Santow JA at 84 DECISION : Appeal dismissed with costs.

CATCHWORDS : INSURANCE - definition of "liability" - definition of "Injury" - latent diseases - mesothelioma - "trigger" of cover - exposure theory - retrospective legislation Workers' Compensation Act 1926 (NSW); s6; s7(4) and (5); s18; Workers' Compensation (Amendment) Act 1960 LEGISLATION CITED : Workers' Compensation (Further Amendment) Act 1975 Workers Compensation (Amendment) Act 1980 Workers' Compensation (Amendment) Act 1981 Workers' Compensation Act 1987; s151AB; s159 Admastos Shipping Co Ltd v Anglo-Saxon Petroleum Co Ltd [1959] AC 133 Amaca Pty Ltd v State of New South Wales ([2003] HCA 44, 7 August 2003, unreported) American Home Insurance v Saunders (1987) 11 NSWLR 363 AMP Fire & General Insurance Co Ltd v Miltenburg [1982] 1 NSWLR 391 AMP Workers' Compensation Services (NSW) Ltd v QBE Insurance Ltd (2003) 53 NSWLR 35 Ansett Transport Industries (Operations) Pty Ltd v Srdic (1982) 42 ACTR 45 Armstrong World Industries Inc v Aetna Casualty & Surety Company & Ors 1996 45 CA4 1 Attorney General v Vernazza [1960] AC 965 Austin v Abbey Mills Inc 824 So 2d 1137 (2002) Australian Casualty Co Ltd v Federico (1986) 4 ANZ Insurance Cases 60-712 Australian Iron & Steel Ltd v Coal Mines Insurance Pty Ltd (1952) 52 SR(NSW) 47 Australian Iron and Steel v GIO [1978] 2 NSWLR 59 Battaglia v James Hardy and Co Pty Ltd (unreported, Vincent J, Supreme Court of Victoria, 12 March 1987) Bendix Mintex Pty Limited v Barnes (1997) 42 NSWLR 307 Bitumen and Oil Refineries (Australia) Ltd v Commissioner for Government Transport (1955) 92 CLR 200 Bradley v Eagle Star Insurance Co Ltd [1989] 1 AC 957 Cacciola and Ors v Fire and All Risks Insurance Co Ltd [1971] 1 NSWLR 691 Cartledge v E Jopling & Sons Ltd [1963] AC 758 Clarke v Bailey (1993) 30 NSWLR 556 Connair Pty Ltd v Frederiksen (1979) 53 ALJR 505 Crimmins v Stevedoring Industry Finance Committee (1999) 200 CLR 1 Di Cecco v Mercantile Mutual Insurance (Workers Compensation) Ltd (2002) DDT 1 Dillingham Engineering Pty Ltd v National Employers' Mutual General Insurance Association Ltd [1971] 1 NSWLR 578 Dingle v Associated Newspapers [1961] 2 QB 172 Distillers Co Biochemicals (Aust) Pty Ltd v Ajax Insurance Co Ltd (1974) 130 CLR 1 Distillers Co (Biochem) Ltd v Thompson (1971) AC 458 Dwyer v Broken Hill South Ltd (1928) 2 WCR 209 E M Baldwin & Son Pty Limited v Plane & Another (1998) 17 NSWCCR 434 Effem Foods Pty Ltd v Trawl Industries of Australia Pty Ltd (receivers and managers appointed - in liquidation) (1993) 43 FCR 510 Fairchild v Glenhaven Funeral Services Ltd [2002] 3 WLR 89 Favelle Mort Limited v Murray (1976) 133 CLR 580 Findlay v Westfield Development Corporation Ltd [1972] 1 NSWLR 422 Fisher v Hebburn Ltd (1960) 105 CLR 188 Flintkote Co v American Mutual Liability Insurance, No.808-594 (unreported) (Cal. Sup. Ct., 1982) Footner v Broken Hill Ass Smelters (1983) 33 SASR 58 Geraldton Building Co Pty Ltd v May (1977) 136 CLR 379 GRE Insurance Ltd v Bristile (1991) 6 ANZ Ins. Cas. 61-078 Green v Windman [1964] VR 297 CASES CITED : Gustavson Drilling (1964) Ltd v Minister of National Revenue [1977] 1 SCR 271 Insurance Co of North America v Forty-Eighth Insulations Inc 633 F 2d 1212 (6th Cir 1980) Insurers Guarantee Funds - NEM General Insurance Ltd (in liq) v Manufacturers Mutual Insurance Ltd (unreported, 12 August 1994, NSW Court of Appeal) Judamia v State of Western Australia, Supreme Court of Western Australia, unreported, 1 March 1999 Kelly v Norwich Union Fire Insurance Ltd (1990) 1 WLR 139 Kodak (Aust) Pty Ltd v Retail Traders Mutual Indemnity Insce Assn (1942) 42 SR(NSW) 231 Letang v Cooper [1965] 1 QB 232 Manufacturers Mutual Insurance Ltd v National Employers Mutual General Insurance Ltd (1989) 5 ANZ Ins.Cas 60-906 Manufacturers Mutual Insurance Ltd v National Employers Mutual General Insurance Association Ltd (1991) 6 ANZ Ins Cas 61-038 Martindale v Burrows [1997] 1 Qd R 243 Maxwell v Murphy (1957) 96 CLR 261 Metro North Commuter Railroad Co v Buckley 521 US 424 (1997) MLC Insurance Ltd v FAI Traders Insurance Co Ltd (1994) 49 FCR 23 MLC Insurance Ltd v Pinto (1994) 8 ANZ Ins Cas 61-214 National General Insurance Co Ltd v South British Insurance Co Ltd (1982) 149 CLR 327 NEM General Insurance Ltd (in Liq) v GIO General Ltd (1994) 33 NSWLR 247 Newton v Federal Commissioner of Taxation [1958] 98 CLR 2 Ogden Industries v Lucas (1969) 118 CLR 32 Papadopoulos v James Hardy and Co Pty Ltd (unreported, Kaye J, Supreme Court of Victoria, 12 February 1988) Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589 Post Office v Norwich Union Fire Insurance Society Ltd [1967] 2 QB 363 Powell v Weaver 2003 La LEXIS 308 Ratcliffe v V S & B Border Homes Ltd (1987) 9 NSWLR 390 Registrar of the Workers Compensation Commission (NSW) v National Employers Mutual Insurance Association Limited (1978) 141 CLR 462 Rheem Australia Ltd v Manufacturer's Mutual Insurance Ltd [1984] 2 NSWLR 370 Scarcella v Lettice (2000) 51 NSWLR 302 Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235 Segal v Fleming [2002] NSWCA 262 State Mines Control Authority v Government Insurance Office (NSW) (1964) 65 SR(NSW) 258 Stevenson v James Hardie & Co Ltd (1997) 15 NSW CCR 568 Sydney Turf Club v Crowley [1971] 1 NSWLR 724; (1972) 126 CLR 420 TNT Australia Pty Ltd v Horne (1995) 36 NSWLR 630 Wardley Australian Ltd v Western Australia (1992) 175 CLR 514 West v Gwynne [1911] 2 Ch 1 Western Pastoral Co v Eyeington (1971) 125 CLR 342 Williams v Milotin (1957) 97 CLR 465 Wilson v First County Trust Ltd (No. 2) [2003] 3 WLR 568 (HL(E)) Wilson v Harvey Trinder (NSW) Pty Ltd [1973] 2 NSWLR 870 WorkCover Authority of NSW v Chubb Australia Limited [2000] NSWCA 221 PARTIES : Orica Limited and Orica Australia Pty Limited (Appellants) CGU Insurance Limited (Respondent) FILE NUMBER(S) : CA 40559/02 COUNSEL : M Joseph, SC (Appellants) G Little, SC/ D Morgan (Respondent) SOLICITORS : Phillips Fox (Appellants) PriceWaterhouseCoopers Legal (Respondent)