Royal & Sun Alliance Insurance Australia Limited -v- Betta Industries Pty Limited; Harlander Pty Limited (in liq) -v- State of New South Wales [2002] NSWCA 323

Reported Decision : (2002) 12 ANZ Insurance Cases 61-544

New South Wales Court of Appeal

CITATION : Royal & Sun Alliance Insurance Australia Limited -v- Betta Industries Pty Limited; Harlander Pty Limited (in liq) -v- State of New South Wales [2002] NSWCA 323 revised - 01/10/2002 FILE NUMBER(S) : CA 41027/01; 41039/01 HEARING DATE(S) : 23 August 2002 JUDGMENT DATE : 23 September 2002

Royal & Sun Alliance Insurance Australia Limited (Appellant) Betta Industries Pty Limited (Respondent) PARTIES : Harlander Pty Limited (in liquidation) (Appellant) State of New South Wales (Respondent) JUDGMENT OF : Meagher JA at 1; Santow JA at 2; Davies AJA at 80

LOWER COURT JURISDICTION : Dust Diseases Tribunal of New South Wales LOWER COURT DDT 194 of 1996/1/2/3 FILE NUMBER(S) : LOWER COURT Curtis J JUDICIAL OFFICER :

Royal & Sun: F M Douglas, QC/ G M Watson Harlander: C Hoeben, QC/ T Duggon COUNSEL : Betta Industries: S R Donaldson, SC/ I Mescher State of NSW: P Blackett, SC/ M Robinson

Royal & Sun: Church & Grace SOLICITORS : Harlander: Dibbs Barker Gosling Betta Industries: Stafford & Associates State of NSW: Crown Solicitors Office CATCHWORDS : INSURANCE - public risk insurance - construction of policy - question of what risk covered by policy - NEGLIGENCE - duty of care - failure to warn - whether the defendant knew of the danger to which the plaintiff bystander was exposed Dust Diseases Tribunal Act 1989 (NSW) s32 LEGISLATION CITED : Law Reform (Miscellaneous Provisions) Act 1946 (NSW) s5 Public Service Act 1902 Azzopardi v Tasman UEB Industries (1985) 4 NSWLR 139 Bradshaw v McEwans Pty Limited (HC, 27 April 1951, unreported) Burnie Port Authority v General Jones (1993-94) 179 CLR 520 Crimmins v Stevedoring Industry Finance Committee (1999) 200 CLR 1 CASES CITED: Jones v Dunkel (1959) 101 CLR 298 Perre v Apand Pty Limited (1999) 198 CLR 180 Pyrenees Shire Council v Day (1998) 192 CLR 330 Semrani v Manoun; Williams v Manoun ([2001] NSWCA 337, 4 October 2001, unreported) Sullivan v Moody (2001) 183 ALR 405 Voli v Englewood Shire Council (1962-63) 110 CLR 74 DECISION : ORDERS; Insurance Appeal (Royal & Sun Alliance -v- Betta Industries); (1) That the appeal be allowed ; (2) That the relevant parts of the judgment and orders of Judge Curtis made on 21 November 2001 be set aside and that in lieu thereof the cross-claim be dismissed with costs; (3) That the Respondent pay the Appellant's costs of this appeal; Duty of Care Appeal (Harlander -v- State of New South Wales); (1) The appeal be dismissed; (2) The Appellant pay the Respondent's costs in the appeal