Foster v QBE European Underwriting Services (Australia) Pty Limited as managing agent for Lloyd’s Syndicate 386 [2018] NSWSC 440

Supreme Court New South Wales

Medium Neutral Citation: Foster v QBE European Underwriting Services (Australia) Pty Limited as managing agent for Lloyd's Syndicate 386 [2018] NSWSC 440 Hearing dates: 09 March 2017 Date of orders: 11 April 2018 Decision date: 11 April 2018 Jurisdiction: Common Law Before: Rothman J Decision: (1) The Court answers the questions posed in the following way:

Question 1: Ignoring the application of the 'other insurance' clauses, which of either or both of the RTA Policies for the period of 1/10/09-1/10/10 (2009 Policy) and/or 1/10/11-1/10/12 (2011 Policy) obliges the Fourth Defendant to indemnify Reed Constructions Australia Pty Ltd (under external administration) (Reed) in respect of any judgment to the Plaintiff.

Answer 1: The 2011 Allianz Policy, referred to in the question as the 2011 Policy, obliges the fourth defendant to indemnify Reed Constructions Australia Pty Ltd (under external administration) ("Reed") in respect of any judgment to the plaintiff.

Question 2: If the 2009 Policy obliges the Fourth Defendant to indemnify Reed in respect of any judgment to the Plaintiff, whether: (a) The 2009 Policy obliges the Fourth Defendant to indemnify Reed for amounts up to $20,000,000 and the First, Second and Third Defendants are only obliged to indemnify Reed under the Lloyd's Policy for amounts over that sum; (b) The Lloyd's Policy obliges the First, Second and Third Defendants to indemnify Reed for amounts up to $20,000,000 and the Fourth Defendant is only obliged to indemnify Reed for amounts over that sum; or (c) Both of the 2009 Policy and the Lloyd's Policy oblige the Defendants to indemnify Reed for amounts up to $20,000,000.