Recent Cases

Admiral International Pty Ltd v Insurance Australia Ltd [2022] NSWCA 277 (20 December 2022) (Bell CJ, Ward P and Macfarlan JA)


Catchwords:


APPEALS – from findings of fact – circumstantial proof – inferences from primary facts – where insurer denied claim on basis of insured’s knowledge of and connivance in and consent to theft and arson – whether controlling mind and will of insured company had requisite knowledge – primary judge’s reasoning circumstantial and based on inference – whether strands of primary judge’s reasoning were capable of sustaining ultimate conclusion

INSURANCE – property insurance – industrial and special risks cover – liability cover – fraud – theft from and subsequent arson of bonded warehouse – where insurer denied claim on basis of insured’s knowledge of and connivance in and consent to theft and arson – whether controlling mind and will of insured company had requisite knowledge – primary judge’s reasoning circumstantial and based on inference – whether strands of primary judge’s reasoning were capable of sustaining ultimate conclusion – whether insurer’s denial of indemnity and allegation of arson were a breach of insurer’s duty of utmost good faith implied by s 13 of the Insurance Contracts Act 1984 (Cth) – whether insured was entitled to recover damages for consequential loss – whether insured had failed to take reasonable precautions to secure warehouse

INSURANCE – measure of indemnity – loss – business interruption cover – where forensic accounting experts disagreed on whether insured company had positive revenue growth trend – where primary judge held that there was no such trend – where primary judge held that insured company had concrete prospects of procuring new customers – whether evidence supported finding that there was no positive growth trend in insured’s revenue – where Court must do the best it can with the evidence available to assess damages