Liberty Mutual Insurance Company v Kellogg Brown and Root Pty Ltd [2017] NSWSC 1519

Supreme Court New South Wales

Medium Neutral Citation: Liberty Mutual Insurance Company v Kellogg Brown and Root Pty Ltd [2017] NSWSC 1519 Hearing dates: 3 November 2017 Decision date: 10 November 2017 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Declaration to be made that plaintiffs' liability under project specific professional indemnity policy is in excess of professional indemnity cover effected and maintained by insureds pursuant to their contractual obligations under the project Catchwords: INSURANCE – project specific indemnity policy – proper construction – whether insurers' liability is in excess of insurance insureds obliged to effect and maintain under project documents Cases Cited: Eagle Star Insurance Co Ltd v National Westminster Finance Australia Ltd (1985) 58 ALR 165 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; HCA 7 Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633 Newey v Westpac Banking Corporation [2014] NSWCA 319 Re Golden Key Ltd [2009] EWCA Civ 636 Shanemist Pty Ltd v Denmac Nominees Pty Ltd [2003] QSC 373 Stratton Finance Pty Ltd v Webb [2014] FCAFC 110 Texts Cited: Australian Oxford Dictionary (online) Lewison and Hughes, The Interpretation of Contracts in Australia, (2012, Thomson Reuters) W I B Enright and R M Merkin, Sutton on Insurance Law, (4th ed 2015, Thomson Reuters) Category: Principal judgment Parties: Liberty Mutual Insurance Company (First Plaintiff) Allianz Australia Insurance Limited (Second Plaintiff) CGU Insurance Limited (Third Plaintiff) AXIS Speciality Europe SE (Fourth Plaintiff) Catlin Australia Pty Ltd (Fifth Plaintiff) Swiss Re International SE (Sixth Plaintiff) Kellogg Brown and Root Pty Ltd (First Defendant) Lloyd's Syndicate 2623/623 and the other Underwriters subscribing to Policy No. GLOPR1201059/2 and Policy No. GLOPR1301059 (Second Defendant) McConnell Dowell Constructors (Aust) Pty Ltd (Third Defendant) Consolidated Contracting Company Australia Pty Ltd (Fourth Defendant) Representation: Counsel: C R C Newlinds SC with A Shearer (Plaintiffs) P Mann with N Olson (First Defendant) S R Donaldson SC with P A Horvath (Second Defendant)