Mobis Parts Australia Pty Ltd v XL Insurance Company SE (No 7) [2017] NSWSC 1321

Supreme Court New South Wales

Medium Neutral Citation: Mobis Parts Australia Pty Ltd v XL Insurance Company SE (No 7) [2017] NSWSC 1321 Hearing dates: 29-31 May, 1, 5–8, 13–16, 19, 21-23 and 26-30 June 2017; further submissions 7 and 19 July 2017; further argument 27 July 2017; further submissions 28 July, 2, 3 and 9 August 2017; further argument 16 August 2017; further submissions 21, 23, 24, and 29 August 2017 Decision date: 29 September 2017 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Mobis entitled to indemnity under the Local Policy Catchwords: INSURANCE – property damage and business interruption policy – warehouse collapse in a storm – whether plaintiff insured entitled to indemnity under a Local Policy or alternatively a Master Policy – whether insurer agreed conditionally to accept liability under the Local Policy – whether collapse was caused by hail or storm – whether on its proper construction Local Policy has the hail limit specified in the Master Policy – whether Local Policy should be rectified to include a hail limit – whether faulty design exclusion in Local Policy enlivened – whether plaintiff is an insured under Master Policy – whether plaintiff entitled to bring action under Master Policy – whether faulty construction exclusion in Master Policy enlivened – quantum of plaintiff's claim – whether plaintiff's stock was lost in collapse; CONTRACT – insurance policies – whether on its proper construction Local Policy has hail limit specified in Master Policy – whether policy should be rectified to include hail limit – whether on proper construction of Master Policy plaintiff entitled to indemnity under storm limit notwithstanding existence of hail limit Legislation Cited: Environmental Planning and Assessment Regulation 2000 (NSW) Insurance Act 1973 (Cth) Insurance Contracts Act 1984 (Cth) Cases Cited: ABN AMRO Bank NV v Bathurst Regional Council (2014) 224 FCR 1; FCAFC 65 Antico v Heath Fielding Australia Pty Ltd (1997) 188 CLR 652 Australian Gypsum Ltd v Hume Steel Ltd (1930) 45 CLR 54; HCA 38 Balent v National Insurance Co of New Zealand Ltd (1959) 59 SR (NSW) 275 Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd [2008] NSWCA 243 British Traders' Insurance Co Ltd v Monson (1964) 111 CLR 86 Caine v Lumley General Insurance Ltd (2006) 14 ANZ Ins Cas 61-698; NSWSC 337 Caine v Lumley General Insurance Ltd [2008] NSWCA 4 Castellain v Preston (1883) 11 QBD 380 Chalmers Leask Underwriting Agencies v Mayne Nickless Ltd (1982) 2 ANZ Ins Cas 60-463 Chalmers Leask Underwriting Agencies v Mayne Nickless Ltd (1983) 155 CLR 279; 2 ANZ Ins Cas 60-514 Chapman v Pole (1870) 22 LT 306 Chartbrook Ltd v Persimmon Homes Ltd [2009] 1 AC 1101 CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384 City Realties (Holdings) Ltd v National Insurance Co of NZ Ltd (1986) 4 ANZ Ins Cas 60-695 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Deaves v CML Fire & General Insurance Co Ltd (1979) 143 CLR 24 East End Real Estate Pty Ltd (t/as City Living) v CE Heath Casualty & General Insurance Ltd (1991) 25 NSWLR 400 Federation Insurance Ltd v Wasson (1987) 163 CLR 303; HCA 34 Fowler v Fowler (1859) 4 De G & J 250; 45 ER 97 General Accident Fire & Life Assurance Corporation Ltd v Midland Bank Ltd [1940] 2 KB 388 General Accident Insurance Asia Ltd v Sakr [2001] NSWCA 402 General Newspapers Pty Ltd v Cigna Insurance (1991) 6 ANZ Ins Cas 61-086 Harris Paper Pty Ltd v FAI General Insurance Co Ltd (1995) 8 ANZ Ins Cas 61-276 HIH Casualty & General Insurance Ltd v Waterwell Shipping Inc (1998) 43 NSWLR 601 Holmes v Payne [1930] 2 KB 301 Jones v Dunkel (1959) 101 CLR 298 Kuwait Airways Corporation v Kuwait Insurance Co SAK (No 1) [1996] 1 Lloyd's Rep 664 Lasermax Engineering Pty Ltd v QBE Insurance (Australia) Ltd (2005) 13 ANZ Ins Cas 61-643; NSWCA 66 Leppard v Excess Insurance Co Ltd [1979] 2 All ER 668; 1 WLR 512 Manufacturers' Mutual Insurance Ltd v Queensland Government Railways (1968) 118 CLR 314 Metlife Insurance Ltd v Visy Board Pty Ltd [2007] NSWSC 1481 Millman v Rochester Ry Co 3 App Div 109; 39 NYS 274 (1896) Mobis Parts Australia Pty Ltd v XL Insurance Company SE (No 4) (Supreme Court (NSW), Stevenson J, 5 June 2017, unrep) Moore v Evans [1917] 1 KB 458 Moore v The National Mutual Life Association of Australasia Limited [2011] NSWSC 416 National Vulcan Engineering Insurance Group Ltd v Transfield Pty Ltd; National Vulcan Engineering Insurance Group Ltd v Connell Wagner Pty Ltd; National Vulcan Engineering Insurance Group Ltd v Coffey Partners International Pty Ltd (2003) 59 NSWLR 119; NSWCA 327 Newton, Bellamy & Wolfe v State Government Insurance Office (Qld) [1986] 1 Qd R 431 Prime Infrastructure (DBCT) Management Pty Ltd v Vero Insurance Ltd [2005] QCA 369 Re Mining Technologies Australia Pty Ltd [1999] 1 Qd R 60 Scott v Copenhagen Reinsurance Co (UK) Ltd [2002] EWHC 1348 (Comm) Simic v New South Wales Land and Housing Corporation [2016] HCA 47 State of New South Wales v AXA Insurance Australia Ltd (2002) 54 NSWLR 409; NSWCA 63 Synergy Health (UK) Ltd v CGU Insurance Plc (t/as Norwich Union) [2010] EWHC 2583 (Comm) Taylor v Johnson (1983) 151 CLR 422 TEC Desert Pty Ltd v Commissioner of State Revenue (WA) (2010) 241 CLR 576 The Nominal Defendant v Gabriel (2007) 71 NSWLR 150; NSWCA 52 Thiel v Federal Commissioner of Taxation (1990) 171 CLR 338; HCA 37 Thiess Pty Ltd v ERC Frankona Reinsurance Limited [2007] QSC 4 Webster v General Accident, Fire & Life Assurance Corporation Ltd [1953] 1 QB 520 Texts Cited: Australian Oxford Dictionary (online) Colinvaux's Law of Insurance (11th UK ed, Sweet & Maxwell) D Kelly and M Ball, Kelly and Ball Principles of Insurance Law, (2nd ed, 2001, LexisNexis) Macquarie Dictionary (online) Category: Principal judgment Parties: Mobis Parts Australia Pty Ltd (Plaintiff) XL Insurance Company SE (First Defendant) AIG Europe Limited (Second Defendant) UNIQA Versicherungs AG (Third Defendant) Representation: Counsel: N J Young QC with T Mehigan and E Ball (Plaintiff) J E Marshall SC with D S Weinberger (First Defendant) S Gray (Second Defendant) P S Braham SC with R Scruby (Third Defendant)