Marketform Managing Agency Ltd v Amashaw Pty Ltd [2018] NSWCA 70

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Marketform Managing Agency Ltd v Amashaw Pty Ltd [2018] NSWCA 70 Hearing dates: 9 March 2018 Decision date: 11 April 2018 Before: Meagher JA at [1]; Leeming JA at [72]; Emmett AJA at [73] Decision: 1. Appeal dismissed. 2. Cross appeal dismissed. 3. Appellant pay the respondent's costs of the appeal and the cross-appellant pay the cross-respondent's costs of the cross appeal. Catchwords: INSURANCE – Insurance Contracts Act 1984 (Cth) – duty of disclosure – innocent non-disclosure – pollution cover – whether reasonable person in insured's circumstances could be expected to know that existing site contamination was materially different from what insurer could assume to exist in property used as service station for several years and accordingly relevant to underwriter

INSURANCE – liability insurance – public liability – pollution cover – where petroleum hydrocarbons from insured's petrol station entered neighbouring sewer owned and operated by Sydney Water – where Damage defined in policy to include nuisance – whether liability for Damage occurring in its entirety during period of insurance and arising out of pollution – whether pollution the direct result of sudden, specific and identifiable event during period of insurance – whether indemnity extended to installing of interception trench to prevent escape of further contaminated groundwater from petrol station

TORTS – private nuisance – substantial interference with enjoyment of rights in land – whether unknown presence of risk of fire or explosion could so interfere with Sydney Water's interest in sewer Legislation Cited: Insurance Contracts Act 1984 (Cth), ss 21(1), 28(3) Limitation Act 1969 (NSW), s 14(1)(b) Protection of the Environment Operations Act 1997 (NSW), s 91 Sydney Water Act 1994 (NSW) ss 37, 38 Uniform Civil Procedure Rules 2005 (NSW), r 42.34 Cases Cited: AXA Reinsurance (UK) Plc v Field [1996] 1 WLR 1026 Boiler Inspection & Insurance Co of Canada v Sherwin-Williams Co of Canada Ltd [1951] AC 319 Brewer v Incorporated Nominal Defendant [1980] VR 469 CGU Insurance Ltd v Porthouse (2008) 235 CLR 103; [2008] HCA 30 Chappel v Hart (1998) 195 CLR 232; [1998] HCA 55 Don Brass Foundry Pty Ltd v Stead (1948) 48 SR (NSW) 482 Environment Agency v Empress Car Co (Abertillery) Ltd [1999] 2 AC 22 Evans v Balog [1976] 1 NSWLR 36 GIO General Ltd v Newcastle City Council (1996) 38 NSWLR 558 GIO General Ltd v Wallace [2001] NSWCA 299; 11 ANZ Ins Cas 61-506 Government Insurance Office of NSW v RJ Green & Lloyd Pty Ltd (1966) 114 CLR 437 Halsey v Esso Petroleum Co Ltd [1961] 1 WLR 683 Hargrave v Goldman (1963) 110 CLR 40 Hunter v Canary Wharf Ltd [1997] AC 655 Leyland Shipping Co Ltd v Norwich Union Fire Insurance Society Ltd [1918] AC 350 Manson v Shire of Maffra (1881) 7 VLR (L) 364 Nicholls v Ely Beet Sugar Factory Ltd [1936] Ch 343 Permanent Trustee Australia Ltd v FAI General Insurance Ltd (2003) 214 CLR 514; [2003] HCA 25 Shadwell v Hutchinson (1830) 4 Car & P 333; 172 ER 728 St Helen's Smelting Co v Tipping (1865) 11 HLC 642; 11 ER 1483 Stealth Enterprises Pty Ltd t/as The Gentlemen's Club v Calliden Insurance Limited [2017] NSWCA 71 Thompson-Schwab v Costaki [1956] 1 All ER 652 Transport Accident Commission v Jewell [1995] 1 VR 300 Walter v Selfe (1851) 4 De G & Sm 315; 64 ER 849 Whitehouse v Fellowes (1861) 10 CB (NS) 765; 142 ER 654 Texts Cited: FH Newark, "The Boundaries of Nuisance" (1949) 65 LQR 480 IH Jacob, Bullen and Leake and Jacob's Precedents of Pleadings, (12th ed 1975, Sweet & Maxwell) J McDonald, "The Insurance Implications of Environmental Liabilities" (1997) 9 Insurance Law Journal 1 WVH Rogers, Winfield and Jolowicz on Tort, (6th ed 1954, Sweet & Maxwell) Category: Principal judgment Parties: Marketform Managing Agency Ltd for and on behalf of the underwriting members of Syndicate 2468, a company incorporated in England and Wales, No. 3584320 (Appellant/Cross Respondent) Amashaw Pty Ltd (Respondent/Cross Appellant) Representation: Counsel: MR Elliott SC (Appellant/Cross Respondent) A Sullivan QC, T Brennan (Respondent/Cross Appellant)