Carillion Construction Ltd v AIG Australia Ltd [2016] NSWSC 495

Supreme Court New South Wales

Medium Neutral Citation: Carillion Construction Ltd v AIG Australia Ltd [2016] NSWSC 495 Hearing dates: 17 and 18 March 2016 Decision date: 22 April 2016 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Separate questions answered; plaintiff's action barred by deed of release and out of time Catchwords: INSURANCE – indemnity insurance – when cause of action arose – whether cause of action arose at time of occurrence of peril or when insurer failed to do what was required of it under the policy - whether claim out of time; LIMITATIONS – whether claim out of time - with what jurisdiction does transaction have closest connection – whether Northern Territory three year limitation or Victorian or New South Wales six year limitation period applies – whether defendant estopped from asserting three year limitation period applies – whether time should be extended under Limitation Act 1981 (NT); CONTRACT – whether claim barred by deed of release – proper construction of release; ESTOPPEL - whether claim barred by an Anshun estoppel – whether defendant estopped from asserting a three year limitation period Legislation Cited: Insurance Contracts Act 1983 (Cth) Limitation Act 1981 (NT) Cases Cited: Akai Pty Ltd v People's Insurance Co Ltd (1996) 188 CLR 418 Associated Forest Holdings Pty Ltd v Gordian Runoff Limited [2015] TASFC 6 Bonython v Commonwealth (1950) 81 CLR 486; [1951] AC 201 Bradley v Eagle Star Insurance Co Ltd [1989] AC 957; 1 Lloyd's Rep 465 Callaghan v Dominion Insurance Co Ltd [1997] 2 Lloyd's Rep 541 CGU Insurance Ltd v Watson [2007] NSWCA 301 CIC Insurance Limited v Bankstown Football Club Limited (1997) 187 CLR 384 Cigna Insurance Asia Pacific Ltd v Packer [2000] WASCA 415 Commonwealth v Vero Insurance Ltd [2012] FCA 826 Commonwealth v Vero Insurance Ltd [2013] FCAFC 152 Doggett v Commonwealth Bank of Australia [2015] VSCA 351 Firma C-Trade SA v Newcastle Protection and Indemnity Association (The Fanti) [1991] 2 AC; [1987] 2 Lloyd's Rep 299 Grant v John Grant & Sons Pty Ltd [1954] HCA 23; 91 CLR 112 In re September 11th Liability Insce Coverage Cases 2004 US Dist LEXIS 3181 John Pfeiffer Pty Ltd v Rogerson [2000] HCA 36; 203 CLR 503 O'Neill v Yield House Inc 964 F Supp 806, 810 (SDNY 1997) Penrith City Council v Government Insurance Office of New South Wales (1991) 24 NSWLR 564 Perri v Coolangatta Investments Pty Ltd [1982] HCA 29; 149 CLR 537 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589 The Owners Corporation of Strata Plan 61390 v Multiplex Corporate Agency Pty Ltd (No 2) [2012] NSWSC 322 Tillotson v ANZ Life Assurance Co Ltd (1997) 9 ANZ Ins Cas 77,131 Transam Insce Co v Thomas M Durkin & Sons 1991 WL 206765 (ED Pa 1 Oct 1991) Tropicus Orchids Flowers and Foliage Pty Ltd v Territory Insurance Office (1998) 10 ANZ Ins Cas 61-412 Virk v Gan Life Holding plc [2000] Lloyd's Rep IR 159 Texts Cited: D K Derrington and R S Ashton, The Law of Liability Insurance, (3rd ed 2013, Lexis Nexis) E R Hardy Ivamy, General Principles of Insurance Law, (6th ed 1993, Butterworths Law) J Birds, B Lynch and S Milnes, MacGillivray on Insurance Law, (13th ed 2015, Sweet & Maxwell) M Davies, A S Bell and P L G Brereton, Nygh's Conflict of Laws in Australia, (9th ed 2014, Lexis Nexis) M Levine and R Haar, Construction Insurance and UK Construction Contracts, (2nd ed 2008, Informa Law) R M Merkin, Colinvaux's Law of Insurance, (10th ed 2015, Sweet & Maxwell) W I B Enright and R M Merkin, Sutton on Insurance Law, (4th ed 2015, Lawbook Co) Category: Principal judgment Parties: Carillion Construction Limited (Plaintiff) AIG Australia Limited (Defendant) Representation: Counsel: J C Sheahan QC with D F C Thomas and E Bathurst (Plaintiff) G McArthur QC with P D Herzfeld (Defendant)