Allianz Australia Insurance Ltd v Certain Underwriters at Lloyd’s of London Subscribing to Policy Number B105809GCOM0430 [2019] NSWCA 271

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Allianz Australia Insurance Ltd v Certain Underwriters at Lloyd's of London Subscribing to Policy Number B105809GCOM0430 [2019] NSWCA 271 Hearing dates: 12 September 2019 Date of orders: 07 November 2019 Decision date: 07 November 2019 Before: Bathurst CJ at [1]; Macfarlan JA at [14]; Meagher JA at [54] Decision: (1) Appeal allowed.

(2) Set aside the orders made by Rees J on 24 April 2019.

(3) Answer the question posed for separate determination by Stevenson J as amended by the parties on 13 September 2019 as follows:

"Whether, on the proper construction of:

(a) the Construction Risks – Material Damage, Public and Products Liability Annual Insurance Policy, policy number 9900000476CGR & LGR, issued by the plaintiff; and

(b) the Public and Products/Contracts Works Liability Policy, policy number B105809GCOM0430, issued by the defendant,

the defendant would have been liable to indemnify Baulderstone Hornibrook Pty Ltd in respect of loss arising out of the injury of Thomas Dempsey on 8 September 2009."

ANSWER: Yes

(4) Order the respondent pay the costs of the appeal and the costs of the separate question in the Court below. Catchwords: INSURANCE – double insurance – contribution between insurers – "other insurance" clauses – one policy contained an "excess" clause and the other an "escape" clause – whether there was double insurance on proper construction of policies – whether rule in Weddell v Road Transport and General Insurance [1932] 2 KB 563 applied Legislation Cited: Insurance Contracts Act 1984 (Cth), s 45(1) NSW Self Insurance Corporation Act 2004 (NSW) Uniform Civil Procedure Rules 2005 (NSW), r 28.2 Cases Cited: Alabama Insurance Guarantee Association v Magic City Trucking Service Inc, 947 So 2d 849 Albion Insurance Co Ltd v Government Office (NSW) (1969) 121 CLR 342; [1969] HCA 55 Australian Eagle Insurance Co Ltd v Mutual Acceptance (Insurance) Pty Ltd [1983] 3 NSWLR 59 Flexys America LP v XL Insurance Co Ltd [2010] Lloyd's Rep. IR 132 In re George and the Goldsmiths and General Burglary Insurance Association Ltd [1899] 1 QB 595 Lambert Leasing Inc v QBE Insurance (Australia) Ltd (2016) 93 NSWLR 166; [2016] NSWCA 254 National Employers Mutual General Insurance Association Ltd v Haydon [1980] 2 Lloyd's Rep 149 Weddell v Road Transport and General Insurance Company Ltd [1932] 2 KB 563 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Zurich Australian Insurance Ltd v Metals & Minerals Insurance Pte Ltd (2009) 240 CLR 391; [2009] HCA 50 Texts Cited: DK Derrington and RS Ashton, The Law of Liability Insurance (3rd ed, 2013) Malcolm A Clarke, The Law of Insurance Contracts (5th ed, 2006); (6th ed, 2009, Informa) Merkin, Colinvaux's Law of Insurance (11th ed, Sweet & Maxwell, 2016) Perry Herzfeld, Thomas Prince and Stephen Tully, Interpretation and Use of Legal Sources: The Laws of Australia (2013, Thomson Reuters) Category: Principal judgment Parties: Allianz Australia Insurance Ltd (Appellant) Certain Underwriters at Lloyd's of London Subscribing to Policy Number B105809GCOM0430 (Respondent) Representation: Counsel: S Donaldson SC / S Sykes (Appellant) A J Sullivan QC / J G Simpkins (Respondent)