Horsell International Pty Ltd v Divetwo Pty Ltd [2013] NSWCA 368

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Horsell International Pty Ltd v Divetwo Pty Ltd [2013] NSWCA 368 Hearing dates: 18 March 2013 Decision date: 01 November 2013 Before: Beazley P at [1]; McColl JA at [2]; Meagher JA at [244] Decision: (1) Confirm the leave given to Horsell on 18 March 2013 to amend the amended notice of appeal to include ground 8 in terms of the further amended notice of appeal. (2) Appeal and cross-appeal dismissed. (3) Appellant pay the costs of the respondents (Dive Two, Mr Todd and Liberty) of the appeal and cross-appeal. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: INSURANCE - construction of insurance policy - insuring clause - whether first and second respondents entitled to indemnity from third respondent - policy cover for claims arising "in connection with the Insured's Business" - injury and damage caused during recreational boat trip - whether trip in connection with insured's business

INSURANCE - construction of insurance policy - exclusion clause - dangerous navigation - Crimes Act 1900 s 52B - whether second respondent's conduct "criminal act or omission" for purposes of exclusion clause - whether act needs to be intentional

NEGLIGENCE - insurance broker - duty of care - retainer - whether insurance broker failed to advise of deficiencies in policy Legislation Cited: Civil Liability Act 2002 Crimes Act 1900 Crimes Act 1958 (Vic) Insurance Contracts Act 1984 (Cth) Motor Traffic Act 1909 Cases Cited: Australian Associated Motor Insurers Ltd v Wright (1997) 70 SASR 110 Australian Aviation Underwriting Pty Limited v Henry (1988) 12 NSWLR 121 Australian Breeders Co-Operative Society Ltd v Jones [1997] FCA 1405; (1997) 150 ALR 488 Australian Broadcasting Commission v Australasian Performing Right Association Ltd [1973] HCA 36; (1973) 129 CLR 99 BHP Billiton Iron Ore Pty Ltd v National Competition Council [2008] HCA 45; (2008) 236 CLR 145 Burrows v Rhodes [1899] 1 QB 816 Caldwell v JA Neilson Investments Pty Ltd [2007] NSWCA 3; (2007) 69 NSWLR 120 CGU Insurance Ltd v Porthouse [2008] HCA 30; (2008) 235 CLR 103 Chartbrook Ltd v Persimmon Homes Ltd [2009] 1 AC 1101 Charter Reinsurance Co Ltd v Fagan [1997] AC 313 Codelfa Construction Pty Ltd v State Rail Authority (NSW) [1982] HCA 24; (1982) 149 CLR 337 Collector of Customs v Agfa-Gevaert Ltd [1996] HCA 36; (1996) 186 CLR 389 Darlington Futures Ltd v Delco Australia Pty Ltd [1986] HCA 82; (1986) 161 CLR 500 Elkateb v Lawindi (1997) 42 NSWLR 396 Fanhaven Pty Ltd v Bain Dawes Northern Pty Ltd [1982] 2 NSWLR 57 Fire and All Risks Insurance Co Ltd v Powell [1966] VR 513 Fraser v BN Furman (Productions) Ltd [1967] 1 WLR 898; [1967] 2 Lloyd's Rep 1 Fraser v The Irish Restaurant & Bar Company Pty Ltd [2008] QCA 270 Geoffrey W Hill & Associates (Insurance Brokers) Pty Ltd v Squash Centre (Allawah North) Pty Ltd (1990) 6 ANZ Ins Cas ¶61-012 Gibb v Commissioner of Taxation (Cth) [1966] HCA 74; (1966) 118 CLR 628 Gilmore v AMP General Insurance Co Ltd (1996) 67 SASR 387 Ground Gilbey Ltd v Jardine Lloyd Thompson UK Ltd [2011] EWHC 124 Halford v Price [1960] HCA 38; (1960) 105 CLR 23 Hatfield v Health Insurance Commission (1987) 15 FCR 487 HP Mercantile Pty Ltd v Commissioner of Taxation [2005] FCAFC 126; (2005) 143 FCR 553 James v British General Insurance Co Ltd [1927] 2 KB 311 Jiminez v The Queen [1992] HCA 14; (1992) 173 CLR 572 Johnson v American Home Assurance Company [1998] HCA 14; (1998) 192 CLR 266 Kelly v The Queen [2004] HCA 12; (2004) 218 CLR 216 King v The Queen [2012] HCA 24; (2012) 245 CLR 588 Kostas v HIA Insurance Services Pty Ltd [2010] HCA 32; (2010) 241 CLR 390 Legal & General Insurance Australia Ltd v Eather (1986) 6 NSWLR 390 McBride v The Queen [1966] HCA 22; (1966) 115 CLR 44 McCann v Switzerland Insurance Australia Ltd [2000] HCA 65; (2000) 203 CLR 579 McGrath v Sturesteps; Sturesteps v HIH Overseas Holdings Ltd (in liq) [2011] NSWCA 315; (2011) 81 NSWLR 690 Mersey Docks and Harbour Board v Henderson Brothers (1888) 13 App Cas 595 Mutual Life & Citizens' Assurance Co Ltd v Evatt [1968] HCA 74; (1968) 122 CLR 556 Nissho Iwai Australia Ltd v Malaysian International Shipping Corp, Berhad [1989] HCA 32; (1989) 167 CLR 219 Norwest Refrigeration Services Pty Ltd v Bain Dawes (WA) Pty Ltd [1984] HCA 59; (1984) 157 CLR 149 QBE Insurance Australia Ltd v Vasic [2010] NSWCA 166 R v Brown [1996] 2 WLR 203; [1996] 1 All ER 545 R v Coventry [1938] HCA 31; (1938) 59 CLR 633 R v De Montero [2009] VSCA 255; (2009) 25 VR 694 R v Jurisic (1998) 45 NSWLR 209 R v Khazaal [2012] HCA 26; (2012) 86 ALJR 884 R v Orcher [1999] NSWCCA 356; (1999) 48 NSWLR 273 R v Reynolds [2010] NSWSC 691 R v Warner (1991) 25 NSWLR 382 RAA-GIO Insurance Ltd v O'Halloran [2007] HCATrans 688 RAA-GIO Insurance Ltd v O'Halloran; Australian Kitchen Industries Pty Ltd v O'Halloran [2007] SASC 245; (2007) 98 SASR 123 Ramco Ltd v Weller Russell & Laws Insurance Brokers Ltd [2008] EWHC 2202 (QB); [2009] Lloyds Rep IR 27 Royal Botanic Gardens and Domain Trust v South Sydney City Council [2002] HCA 5; (2002) 240 CLR 45 Selected Seeds Pty Ltd v QBEMM Pty Ltd [2010] HCA 37; (2010) 242 CLR 336 Sydney Futures Exchange Ltd v Australian Stock Exchange Ltd (1995) 56 FCR 236 Sydney Local Health Network v QY [2011] NSWCA 412 Taciak v Commissioner of Australian Federal Police (1995) 59 FCR 285 Tepko Pty Ltd v Water Board [2001] HCA 19; (2001) 206 CLR 1 Thomas v State of New South Wales [2008] NSWCA 316 Tinline v White Cross Insurance Association Ltd [1921] 3 KB 327 Transfield Services (Australia) Pty Ltd v Hall; Hall v QBE Insurance (Australia) Pty Ltd [2008] NSWCA 294; (2008) 75 NSWLR 12 Vero Insurance Ltd v Australian Prestressing Services Pty Ltd [2013] NSWCA 181 Vero Insurance Ltd v Power Technologies Pty Ltd [2007] NSWCA 226 Watts v Perry [1972] 1 NSWLR 73 Wilkie v Gordian Runoff Ltd [2005] HCA 17; (2005) 221 CLR 522 Xerri v Kingmill Pty Ltd [1998] NSWSC 573; (1998) 25 MVR 569 Y.Z. Finance Co Pty Ltd v Cummings [1964] HCA 12; (1964) 109 CLR 395 Texts Cited: D Derrington and R Ashton, Law of Liability Insurance, 2nd ed (2005) LexisNexis Butterworths K Lewison and D Hughes, The Interpretation of Contracts in Australia (2012) Thomson Reuters (Professional) Australia Limited K Sutton, Insurance Law in Australia, 3rd ed (1999) LBC Information Services Second Reading Speech for the Crimes (Dangerous Driving) Bill, Victorian Legislative Assembly, Parliamentary Debates (Hansard), 3 June 2004 Second Reading Speech of the Hon Michael Egan MLC, Criminal Legislation Further Amendment Bill, New South Wales Legislative Council, Parliamentary Debates (Hansard), 17 April 1996 Category: Principal judgment Parties: Horsell International Pty Ltd - Appellant/First Cross-Defendant Divetwo Pty Ltd - First Respondent/Cross-Claimant William Todd - Second Respondent/Cross-Claimant Liberty Mutual Insurance Co - Third Respondent/Second Cross-Defendant Representation: Counsel: S Donaldson SC with G M Drew - Appellant Dr C J Birch SC with P Lowson - First and Second Respondents J Sexton SC with D Macfarlane - Third Respondent Solicitors: Clyde & Co - Appellant Slater & Gordon - First and Second Respondents Riley Gray-Spencer - Third Respondent File Number(s): CA 2012/73365 Publication restriction: No Decision under appeal Citation: Lane v Dive Two Pty Ltd [2012] NSWSC 104 Date of Decision: 2012-02-24 00:00:00 Before: Adamson J File Number(s): SC 2008/289706