Globe Church Incorporated v Allianz Australia Insurance Ltd [2019] NSWCA 27

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Globe Church Incorporated v Allianz Australia Insurance Ltd [2019] NSWCA 27 Hearing dates: 26 November 2018 Date of orders: 26 February 2019 Decision date: 26 February 2019 Before: Bathurst CJ, Beazley P and Ward JA at [1]; Meagher JA at [216]; Leeming JA at [285] Decision: 1. The questions posed for separate determination should be answered as follows: (a) The claim for damages in relation to the 2008 Policy for Property Damages accrued at the time of the property damage no later than 31 March 2008 and the claim for damages in relation to Additional Costs, business interruption and professional fees accrued no later than the end of September 2009. (b) None. 2. Proceedings as against the first defendant be dismissed with costs (save as to the costs of the applications for separate determination and the hearing in this Court). 3. The plaintiff pay 50% of the aggregated costs of the defendants in respect of their applications for separate determination of the questions determined above and the hearing thereof in this Court, such costs to be calculated on the ordinary basis and apportioned as between the defendants in the proportion that each defendant's own costs of the said applications and hearing bears to the total of the defendants' aggregated costs thereof. 4. Remit the matter to Davies J in the Common Law Division for directions as to the further conduct of the proceedings in that Division. Catchwords: INSURANCE — Claims — Property Damage – Limitation period – whether claim statute barred – interpretation of insurance policy – time at which insured's cause of action for damages for breach of contract under an indemnity policy of property insurance arose – whether cause of action for damages arose at the time of the property damage – existence of an implied term requiring performance within a reasonable time Legislation Cited: Associations Incorporation Act 2009 (NSW) Corporations Act 2001 (Cth) Enterprise Act 2016 (UK), Part 5, ss 28-30 Evidence Act 1995 (NSW), s 191 Insurance Act 2015 (UK) Insurance Contracts Act 1984 (Cth)), ss 13, 54, 58 Limitation Act 1935 (WA), s 38(1)(v) Limitation Act 1969 (NSW), s 14(1) Marine Insurance Act 1906 (UK) The Saskatchewan Insurance Act, R SS 1978, C S-26 Uniform Civil Procedure Rules 2005 (NSW), rr 12.4, 28.2, 28.4 Cases Cited: Alexander v Ajax Insurance Co Ltd [1956] VLR 436 Allianz Australia Insurance Ltd v Bluescope Steel Ltd (2014) 87 NSWLR 332; [2014] NSWCA 276 Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191 Apostolos Konstantine Ventouris v Trevor Rex Mountain (The Italia Express (No 2)) [1992] 2 Lloyds Rep 281 Associated Forest Holdings Pty Ltd v Gordian Runoff Ltd [2015] TASFC 6 Australian Casualty Co Ltd v Federico (1986) 160 CLR 513; [1986] HCA 32 Bankstown Football Club v CIC Insurance Ltd (Supreme Court (NSW), Cole J, 16 December 1993, unrep) Brescia Furniture Pty Ltd v QBE Insurance (Australia) Ltd [2007] NSWSC 598 British American Tobacco Australia Ltd v Eagle Star Reinsurance Co Ltd [2006] NSWCA 156 British Traders' Insurance Co Ltd v Monson (1964) 111 CLR 86; [1964] HCA 24 Caledonia North Sea Limited v British Telecommunications Plc (The Piper Alpha) [2002] 1 Lloyd's Rep 553 Callaghan v Dominion Insurance Co Ltd [1997] 2 Lloyd's Rep 541 Canning v Temby (1905) 3 CLR 419; [1905] HCA 45 Canty v PaperlinX Australia Pty Ltd [2014] NSWCA 309 Carillion Construction Ltd v AIG Australia Ltd [2016] NSWSC 495; (2016) 19 ANZ Ins Cases 62-115 Carrick Furniture House Ltd v General Accident Fire and Life Assurance Corp Ltd (1978) SLT 65 Castellain v Preston (1883) 11 QBD 380 Castle Insurance Co Ltd v Hong Kong Islands Shipping Co Ltd [1984] 1 AC 226 CGU Insurance Ltd v Watson [2007] NSWCA 301 Chandris v Argo Insurance Co Ltd [1963] 2 Lloyd's Rep 65 Charter Reinsurance Co Ltd v Fagan [1997] AC 313 CIC Insurance Ltd v Bankstown Football Club Ltd (1995) 8 Anz Ins Cas 61-232 CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384; [1997] HCA 2 CIC Insurance Ltd v Bankstown Football Club Ltd [No 2] [1995] NSWCA 76 Cigna Insurance Asia Pacific Ltd v Packer (2000) 23 WAR 159; [2000] WASCA 415 Cole's Case (1588) Cro Eliz 97; 78 ER 356 Collinge v Heywood (1839) 9 Ad & E 634; 112 ER 1352 Collins v Wallis (1826) 11 Moore CP 248 Commonwealth v Vero Insurance Ltd (2013) 306 ALR 182; [2013] FCAFC 152 Cutler v Southern (1667) 1 Wms Saund 113; 85 ER 123 Dawson v Wrench (1849) 3 Ex 359; 154 ER 883 Do Carmo v Ford Excavations Pty Ltd 154 CLR 234; [1984] HCA 17 Dueck Chevrolet Cadillac Hummer Ltd v Insurance Corp of British Columbia [2012] BCCA 493 Duffield v Scott (1789) 3 TR 374; 100 ER 628 Edwards v Kumarasamy [2016] AC 1334 F & K Jabbour v Custodian of Israeli Absentee Property [1954] 1 WLR 139 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Firma C-Trade SA v Newcastle Protection and Indemnity Association (The Fanti) [1991] 2 AC 1 Foran v Wight (1989) 168 CLR 385; [1989] HCA 51 Fraunce's Case (1609) 8 Co Rep 89b; 77 ER 609 Gable v Moss (1792) 1 Bulst 44; 80 ER 747 Gaelic Assignments Limited v Sharp (2001) SLT 914 Globe Church Incorporated v Allianz Australia Insurance Ltd [2018] NSWSC 1367 Government Insurance Office of New South Wales v Atkinson-Leighton Joint Venture (1981) 146 CLR 206; [1981] HCA 9 Harrison v Shepherd Homes [2010] EWHC 1398 Howell v Young (1826) 5 B & C 259 Hunter v Stronghold Insurance (Aust) Ltd (Supreme Court of Victoria, 18 January 1991, unreported) Hyde v United States 225 US 347 (1912) Irving v Manning (1847) 1 HLC 287 Jervis v Harris [1996] Ch 195 Johnson v The Salvage Association (1887) 29 QBD 458 King v Atkins (1714) 1 Sid 442; 82 ER 1206 Kone Elevators Pty Ltd v Popa [2006] VSCA 26 Larking v Great Western (Nepean) Gravel Ltd (in liq) (1940) 64 CLR 221; [1940] HCA 37 Larratt v Bankers & Traders Insurance Co Ltd (1941) 41 SR (NSW) 215 Law v London Indisputable Life Policy Co (1855) 1 K&J 223; 69 ER 439 Lazarus v ICAC (2017) 94 NSWLR 36; [2017] NSWCA 37 Letang v Cooper [1965] 1 QB 232 Luckie v Bushby (1853) 13 CB Rep 864; 138 ER 1443 MacIntosh v Dalwood (No 3) (1930) 30 SR (NSW) 332 MacIntosh v Dalwood (No 4) (1930) 30 SR (NSW) 415 Marcus Arnold Lehmann v Insurance Company of North America [2000] HKCFI 348 Mandrake Holdings Ltd v Countrywide Assured Group Ltd [2005] EWCA Civ 638 Maxwell v Highway Hauliers Pty Ltd (2013) 45 WAR 297; [2013] WASCA 115 McCann v Switzerland Insurance Australia Limited (2000) 203 CLR 579; [2000] HCA 65 Medical Defence Union Ltd v Department of Trade [1979] 2 WLR 686 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Newen v McNichol (1938) 38 SR (NSW) 609 Packer v Cigna Insurance Asia Pacific Ltd (2000) 23 SR (WA) 191; [2000] WADC 3 Parkin v Thorold (1851) 2 Sim NS 1; 61 ER 239 Paterson v Pongrass Group Operations Pty Ltd [2011] NSWSC 1588 Pellas v Neptune Marine Insurance Co (1879) 5 CPD 34 Penrith City Council v Government Insurance Office of New South Wales (1991) 24 NSWLR 564 Peter Turnbull & Co Pty Ltd v Mundus Trading Co (Australasia) Pty Ltd (1954) 90 CLR 235; [1954] HCA 25 Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 President of India v Lips Maritime Corp [1988] AC 395 Raiffeisen Zentralbank Österreich AG v Five Star Trading LLC [2001] QB 825 Read v Brown (1888) 22 QBD 128 Scott Lithgow Ltd v Secretary of State for Defence (1989) SC (HL) 9 Seele Australia GmbH & Co KG v Tokio Marine Europe Ins Ltd (No 3) [2010] Lloyd's Rep IR 490 Sheldon v Beath [1993] Aust Torts Reports 81-209 Southern Cross Assurance Co Ltd v Australian Provincial Assurance Association Ltd (1935) 53 CLR 618; [1935] HCA 56 Sprung v Royal Ins Co (UK) Ltd [1999] Lloyd's Rep IR 111 Stomp Pork Farm Ltd v Lombard General Insurance Company of Canada [2008] SKQB 405 The Commonwealth v Vero Insurance Ltd (2012) 291 ALR 563; [2012] FCA 826 The Sadlers Company v Badcock (1743) 2 Atk 554; 26 ER 733 Tillotson v ANZ Life Assurance Co Ltd (1997) 9 ANZ Ins Cas 61,378 Total Oil Products (Australia) Pty Ltd v Robinson [1970] 1 NSWR 701 Towry Law plc v Chubb Insurance Co of Europe SA [2008] NSWSC 1352 Transthene Packaging Co Ltd v Royal Insurance (UK) Ltd [1996] LRLR 32 Tucker v Unknown Person [2015] NLCA 212 Versloot Dredging BV v HDI Gerling Industrie Versicherung AG (The DC Merewestone) [2017] AC 1 Victorian WorkCover v Esso Australia Ltd (2001) 207 CLR 520; [2001] HCA 53 Virk v Gan Life Holdings Plc [2000] Lloyd's Rep IR 159 Vyse v Wakefield (1840) 6 M & W 442; 151 ER 485 Waters v Earl of Thanet (1842) 2 QB 757 Wilkie v Gordian Runoff Limited (2005) 221 CLR 522; [2005] HCA 17 Williams Pickersgill & Sons Ltd v London and Provincial Marine and General Insurance Co Ltd [1912] 3 KB 614 Yeoman Credit Ltd v Latter [1961] 1 WLR 828 York Air Conditioning and Refrigeration (A/sia) Pty Ltd v The Commonwealth (1949) 80 CLR 11; [1949] HCA 23 Zaccardi v Caunt [2008] NSWCA 202 Texts Cited: ALRC Report No. 20 on Insurance Contracts J Birds et al, MacGillivray on Insurance Law (13th edn, 2015; 14th edn, 2018, Sweet & Maxwell) Brown, Menzies, Cassels, Brock and Blackwell, Insurance Law in Canada (3rd edn) Bullen and Leake, Precedents of Pleadings in Personal Actions in the Superior Courts of Common Law (3rd ed, 1868, Stevens and Sons) N Campbell, "Monetary remedies for wrongful declinatures of insurance claims" (2004) 15 Insurance Law Journal 185 Chitty on Contracts (33rd ed, 2018, Thomson Reuters) M Clarke, "Nature of Insurer's Liability" [1992] LMCLQ 287 M Clarke, The Law of Insurance Contracts (2nd, 4th and 6th edns, Informa) Couch on Insurance (2d) (1983, Vol 15) Courtney, Contractual Indemnities (2014, Hart Publishing) Edelman, McGregor on Damages (20th ed, 2018 Thomson Reuters) Enright and Jess, Professional Indemnity Insurance Law (2nd edn, 2007) Levine and Haar, Construction Insurance and UK Construction Contracts (2nd edn, 2013) H McGregor, McGregor on Damages (Third Supplement to Eighteenth Edition, 2012, Sweet & Maxwell) R Merkin, Colinvaux's Law of Insurance (11th edn, 2016, Sweet & Maxwell) Park, A System of the Law of Marine Insurances (1842, Saunders and Bennings) Law Commission and Scottish Law Commission, Insurance Contract Law: Business Disclosure; Warranties; Insurers' Remedies for Fraudulent Claims; and Late Payment (Law Com No 353/Scot Law Com No 238, July 2014) Reed, Construction All Risks Insurance (2014) F D Rose, Marine Insurance Law and Practice (2004, Informa) Tidd, The Practice of the Courts of King's Bench and Common Pleas (9th ed, 1828, Butterworth & Son) Welford and Otter-Barry, The Law Relating to Fire Insurance (3rd ed, 1932, Butterworths) William R Vance and Buist M Anderson, Handbook on the Law of Insurance (3rd ed, 1951, West Publishing Co) Category: Principal judgment Parties: Globe Church Incorporated (Plaintiff) Allianz Australia Insurance Ltd (First Defendant) Ansvar Insurance Ltd (Second Defendant) Representation: Counsel: S Docker with A Gandar (Plaintiff) P Herzfeld (First Defendant) GA Sirtes SC with JL Clark (Second Defendant)