Barrie Toepfer Earthmoving and Land Management Pty Ltd v CGU Insurance Ltd [2016] NSWCA 67

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Barrie Toepfer Earthmoving and Land Management Pty Ltd v CGU Insurance Ltd [2016] NSWCA 67 Hearing dates: 25 September 2015 Decision date: 07 April 2016 Before: Meagher JA at [1]; Ward JA at [100]; Sackville AJA at [101] Decision: 1. Appeal allowed. 2. Set aside order 2 made on 28 August 2014. 3. Judgment for the cross-claimant/appellant (Barrie Toepfer Earthmoving and Land Management Pty Ltd) against the cross-defendants/respondents (CGU Insurance Limited, Vero Insurance Limited and NTI Limited) on the amended cross-claim. 4. The respondents pay the appellant's costs of the appeal. Catchwords: INSURANCE – commercial motor vehicle policy – height of excavator carried on vehicle exceeded low clearance height and struck spans of Hexham Bridge – whether insurers entitled to rely upon exclusion in respect of damage caused by recklessness and breach of condition as to taking of reasonable care – onus of proof in relation to compliance with condition – whether employee's conduct in driving onto or over bridge involved failure to take such precautions as he considered reasonable having regard to risk recognised – whether primary judge erred in finding insurer entitled to refuse indemnity by reason of employee's recklessness – whether obligation imposed by condition to comply with statutory obligations absolute Legislation Cited: Australian Road Rules, r 102 Roads Act 1993 (NSW), s 102(2) Road Transport (Safety and Traffic Management) (Road Rules) Regulation 1999 (NSW), reg 6 Road Transport (Vehicle Registration) Regulation 1998 (NSW), reg 57(1); Sch 4, cl 76 Cases Cited: Albion Insurance Company Ltd v Body Corporate Strata Plan No 4303 [1983] 2 VR 339 Australian Casualty Co Ltd v Federico [1986] HCA 32; 160 CLR 513 CGU Insurance Ltd v Lawless [2008] VSCA 38; 15 ANZ Ins Cas 61-755 Digby v General Accident Fire and Life Assurance Corporation Ltd [1943] AC 121 Fraser v B N Furman (Productions) Ltd [1967] 1 WLR 898 Jones v Dunkel [1959] HCA 8; 101 CLR 298 Kodak (Australasia) Pty Ltd v Retail Traders Mutual Indemnity Insurance Association (1942) 42 SR (NSW) 231 Legal and General Insurance Australia Ltd v Eather (1986) 6 NSWLR 390 McLennan v Insurance Australia Ltd [2014] NSWCA 300; 313 ALR 173 Tesco Supermarkets Limited v Nattrass [1972] AC 153 The Tokio Marine and Fire Insurance Co Ltd v Costain Australia Ltd [1988] NSWCA 157; (1989) 5 ANZ Ins Cas 60-891 Vero Insurance Ltd v Power Technologies Pty Ltd [2007] NSWCA 226; 14 ANZ Ins Cas 61-745 Wallaby Grip Limited v QBE Insurance (Australia) Limited [2010] HCA 9; 240 CLR 444 Wilkie v Gordian Runoff Limited [2005] HCA 17; 221 CLR 522 Woolfall & Rimmer Ltd v Moyle [1942] 1 KB 66 Texts Cited: Prof M Clarke, The Law of Insurance Contracts (6th ed, 2009, Informa) Category: Principal judgment Parties: Barrie Toepfer Earthmoving and Land Management Pty Ltd (Appellant) CGU Insurance Limited (First Respondent) Vero Insurance Limited (Second Respondent) NTI Limited (Third Respondent) Representation: Counsel: R Cavanagh SC with P Gow (Appellant) P Deakin QC with P Stockley (Respondents)