Garage Fashions Pty Ltd v Insurance Australia Ltd trading as NRMA Insurance [2011] NSWSC 968

Supreme Court New South Wales

Medium Neutral Citation: Garage Fashions Pty Ltd v Insurance Australia Ltd trading as NRMA Insurance [2011] NSWSC 968 Hearing dates: 9 August 2011, 10 August 2011, 11 August 2011, 12 August 2011 Decision date: 26 August 2011 Jurisdiction: Common Law Before: Schmidt J Decision: The usual order as to costs is that they follow the event. If the parties wish to be heard on the question of costs, they should approach. Otherwise, for the reasons given the orders should reflect that: 1. The defendant is to pay the plaintiff the sum of $192,498, which comprises: (a) Stock - $121,148 (b) Contents - $60,000 (c) Cleaning costs - $5,850 (d) Accounting fees - $5,500 2. The defendant is to pay the plaintiff interest in respect of stock, from 8 June 2011, and otherwise, from 3 November 2009. The parties should bring in short minutes of the final order. Catchwords: INSURANCE - Fire insurance - losses and claims - damages - retail fashion shop - whether replacement cost should include mark-ups, expenses and profits - stock purchased through wholesale company - retail and wholesale companies no longer trading - mark-ups - expert evidence - experts' view of value of stock - replacement value of stock - fixtures and fittings - business interruption - interest - section 57 of the Insurance Contracts Act 1984 (Cth) - orders Legislation Cited: Evidence Act 1995 Insurance Contracts Act 1984 (Cth) Uniform Civil Procedure Rules 2005 Cases Cited: Bankstown Football Club v CIC Insurance Ltd (Supreme Court of New South Wales, Cole J, 17 December 1993, unreported) British Traders' Insurance Co Ltd v Monson (1964) 111 CLR 86 Castellain v Preston (1883) 11 QBD 380 Dasreef Pty Ltd v Hawchar [2011] HCA 21; (2011) 277 ALR 611 Fire & All Risks Insurance Co Ltd v Rousianos (1989) 19 NSWLR 57 Leppard v Excess Insurance Co Ltd [1979] 1 WLR 512; [1979] 2 All ER 668 Makita (Australia) Pty Ltd v Sprowles [2001] NSWCA 305; (2001) 52 NSWLR 705 Roumeli Food Stores (NSW) Pty Ltd v The New India Assurance Co Ltd [1972] 1 NSWLR 227 Category: Principal judgment Parties: Garage Fashions Pty Limited (Plaintiff) Insurance Australia Limited t/as NRMA Insurance (Defendant) Representation: Counsel: Mr PB Dooley SC with Mr J Jobson, counsel (Plaintiff) Mr P Braham SC with Mr J Hynes, counsel (Defendant) Solicitors: Gerard Malouf and Partners (Plaintiff) Williams Roberts Lawyers (Defendant) File Number(s): 2010/90555