AXA GLOBAL RISKS (UK) LTD v HASKINS CONTRACTORS PTY LTD [2004] NSWCA 138

Reported Decision : (2004) 13 ANZ Insurance Cases 61-611

New South Wales Court of Appeal

CITATION : AXA GLOBAL RISKS (UK) LTD v HASKINS CONTRACTORS PTY LTD [2004] NSWCA 138 HEARING DATE(S) : 24 March 2004 JUDGMENT DATE : 6 May 2004

JUDGMENT OF : Mason P at 1; Bryson JA at 87; Windeyer J at 88 DECISION : Appeal upheld in part (see par 86)

CATCHWORDS : INSURANCE CONTRACT - whether damages occurred during the period of insurance - distinction between damaged property and property liable to become damaged - whether "condition when new" confined recovery to reconstruction with original faults - whether supervisory costs were necessarily incurred - whether losses were a 'single event' or 'series'. PARTIES : AXA GLOBAL RISKS (UK) LTD HASKINS CONTRACTORS PTY LTD FILE NUMBER(S) : CA 40591/03 COUNSEL : Appellant: J E Marshall SC/ D S Weinberger Respondent: J Kelly SC/ M Orlov SOLICITORS : Appellant: Moray & Agnew Respondent: Abadee, Dresdner & Freeman

LOWER COURT District Court JURISDICTION : LOWER COURT DC 10568/01 FILE NUMBER(S) : LOWER COURT Puckeridge DCJ JUDICIAL OFFICER :

IN THE SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL CA 40591/2003 DC 10568/2001

MASON P BRYSON JA WINDEYER J

Thursday 6 May 2004

AXA GLOBAL RISKS (UK) LTD v HASKINS CONTRACTORS PTY LTD

BACKGROUND: The respondent (the insured) entered into a building contract to construct a subdivision project at Bayview. The construction of two timber crib retaining walls was sub-contracted to Terra Services Pty Ltd. The eastern wall was completed in October 1999 and the western wall completed in March 2000. During March 2000 various defects and non-conformities were identified with the construction of the walls. Terra Services was advised that rectification work was required, however, it failed to carry it out and later went into liquidation. As time progressed, further damage was observed in the walls, including the splitting and crushing of headers.