Camellia Properties Pty Ltd and Ors v Wesfarmers General Insurance Ltd [2013] NSWSC 1975

Supreme Court New South Wales

Medium Neutral Citation: Camellia Properties Pty Ltd and Ors v Wesfarmers General Insurance Ltd [2013] NSWSC 1975 Hearing dates: 8, 9, 10, 11, 14, 15, 16, 17, 18, 21, 22, 23, 24, 28, 29, 30, 31 October 2013 and 1 November 2013 Decision date: 24 December 2013 Before: Sackar J Decision: See paragraphs [707]-[710] Catchwords: ENVIRONMENT AND PLANNING - whether lodgement of development application was required for reinstatement of house to "as was" condition - whether, and extent to which, lodgement of development application necessitated upgrade of non-damaged components of the house.

ESTOPPEL - estoppel by convention - whether parties adopted common assumptions inconsistent with the terms of the insurance policy - whether insurer estopped from denying assessment of liability for reasonable costs of reinstatement by reference to various reports - whether insurer estopped from relying on terms of the policy in respect of costs of alternative accommodation.

INSURANCE - home and contents policy - construction of policy - whether policy terms varied by parties' communications - assessment of reasonable costs of reinstatement of fire damaged house - whether insurer or insured (or both) breached duty of utmost good faith. Legislation Cited: Crimes Act 1990 Environmental Planning and Assessment Act 1979 Environmental Planning and Assessment Regulation 2000 Revised Professional Conduct and Practice Rules 1995 South Sydney Local Environment Plan 1998 (Amendment No 5) - Exempt and Complying Development South Sydney Development Control Plan 1999 - Exempt and Complying Development Insurance Contracts Act 1984 (Cth) Insurance Contracts Regulation 1985 (Cth) Cases Cited: Belgrove v Eldridge [1954] HCA 36, (1954) 90 CLR 613 Bowen v Blair [1933] VLR 398 Briginshaw v Briginshaw [1938] HCA 34; (1938) 60 CLR 336 Carter v Boehm (1766) 3 Burr 1905 CGU Insurance Ltd v AMP Financial Planning Pty Ltd [2007] HCA 36; (2007) 235 CLR 1 Chaplin v Hicks [1911] 2 KB 786; [1911-13] All ER Rep 224 Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance (Aust) [1986] HCA 14; (1986) 160 CLR 226 Cubillo v Commonwealth of Australia [2000] FCA 1084; (2000) 174 ALR 97 D'Aloia v Colonial Mutual General Insurance Co Ltd [1987] VR 807 DHJPM Pty Ltd v Blackthorn Resources Ltd [2011] NSWCA 348; (2011) 83 NSWLR 728 Distillers Co Bio-Chemicals (Aust) Pty Ltd v Ajax Insurance Co Ltd [1974] HCA 3; (1974) 130 CLR 1 Durban Roodepoort Deep Ltd v Newshore Nominees Pty Ltd [2005] WASCA 231 Edwards v AA Mutual Ins Co Ltd (1985) 3 ANZ Ins Cas 60-668 Ewer v National Employers' Mutual General Insurance Association Ltd [1937] 2 All ER 193 Fink v Fink [1946] HCA 54; (1946) 74 CLR 127 Fox v Percy [2003] HCA 22; (2003) 214 CLR 118 Horsell International Pty Ltd v Divetwo Pty Ltd [2013] NSWCA 368 Houghton v Immer (No 155) Pty Ltd (1997) 44 NSWLR 46 Hyder Consulting (Australia) Pty Ltd v Wilh Wilhelmsen Agency Pty Ltd [2001] NSWCA 313 JLW (Vic) Pty Ltd v Tsiloglou [1994] 1 VR 237 Johnson v Australian Gas Co Ltd (1992) 7 ANZ Ins Cas 61-109 Legione v Hateley [1983] HCA 11; (1983) 152 CLR 406 London Assurance v Clare [1937] 57 Lloyd's Rep 254 Malec v J C Hutton Pty Ltd [1990] HCA 20; (1990) 169 CLR 638 Manifest Shipping Co Ltd v Uni-Polaris Shipping Co Ltd; The Star Sea [2001] UKHL 1; [2001] 2 WLR 170 McCrohon v Harith [2010] NSWCA 67 McGraddie v McGraddie and another [2013] UKSC 58; [2013] 1 WLR 2477 Moratic Pty Ltd v Gordon [2007] NSWSC 5; (2007) 13 BPR 24,713 Motor Accident Mutual Insurance Pty Ltd v Kelly (1998) 10 ANZ Ins Cas 61-420 Newnham v Baker [1989] 1 Qd R 393 NSW Medical Defence Union Ltd v Transport Industries Co Ltd (1985) 4 NSWLR 107 Nilon v Bezzina [1988] 2 Qd R 420 Orakpo v Barclays Insurance Services Co Ltd & Anor [1994] CLC 373 Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd [2003] HCA 10; (2003) 196 ALR 257 Ratcliffe v Evans [1892] 2 QB 524 Ryledar Pty Ltd v Euphoric Pty Ltd [2007] NSWCA 65; (2007) 69 NSWLR 603 Schultz v New Zealand Insurance Co Ltd [1983] 1 VR 189 South Pacific Manufacturing Co Ltd v New Zealand Security Consultants & Investigations Ltd; Mortensen v Laing [1992] 2 NZLR 282 State of New South Wales v Burton [2008] NSWCA 319 State of New South Wales v Moss [2000] NSWCA 133; (2000) 54 NSWLR 536 Stuart v GRE Ltd (1988) 5 ANZ Ins Cas 60-844 Talbot v General Television Corporation Pty Ltd [1980] VR 224 Troulis v Vamvoukakis [1998] NSWCA 237 Ventouris v Mountain (The Italia Express (No 2)) [1992] 2 Lloyd's Rep 281 Waterman v Gerling Australia Insurance Co Pty Ltd [2005] NSWSC 1066; (2005) 65 NSWLR 300 Wilson v Matthews [1913] VLR 224 Zorom Enterprises v Zabow [2007] NSWCA 106; (2007) 71 NSWLR 354 Texts Cited: A M Gleeson, "Judicial Legitimacy" (2000) 20(1) Australian Bar Review 4 E R H Ivamy, Fire and Motor Insurance, 4th ed (1984) Butterworths Kelly & Ball Principles of Insurance Law P M Eggers, S Picken and P Foss, Good Faith and Insurance Contracts, 2nd ed (2004) LLP Category: Principal judgment Parties: Camellia Properties Pty Ltd (First Plaintiff) SA Matthews Holdings Pty Ltd (Second Plaintiff) Lithgow Properties Pty Ltd (Third Plaintiff) David Ferdynand Libling (Fourth Plaintiff) Sandra Anne Libling (Fifth Plaintiff) Wesfarmers General Insurance Ltd (Defendant) Representation: Counsel: M Jones SC and C Gleeson (Plaintiffs) R Cavanagh SC and S Walsh (Defendant) Solicitors: Corrs Chambers Westgarth (Plaintiffs) Turks Legal (Defendant) File Number(s): 2010/302314