Commonwealth of Australia v. Chubb Security Australia Pty Ltd [2004] NSWCA 77

Commonwealth of Australia v. Chubb Security Australia Pty Ltd [2004] NSWCA 77

On the proper construction of clauses 9.1.1 and 9.1.2, Chubb was required to obtain and extend to the Commonwealth insurance cover for liabilities for personal injury or death to Chubb employees arising at common law or under statute in connection with performance of the Security Contract. The obligation was not confined to workers' compensation type cover. Because Chubb did not obtain such cover, it breached the contract and was liable to the Commonwealth for the amount of Ms Manning's judgment and related costs.

Jurisdiction
Australia
Judgment Date
19 February 2004
Procedural Posture
Appeal Concerning Construction of a Contract and Breach of Contractual Insurance Obligation / Ex Tempore Judgment of the New South Wales Court of Appeal From a District Court Judgment
Outcome
Appeal allowed with costs; District Court judgment set aside; judgment entered for the Commonwealth on the cross-claim.
Legal Topics
['construction of Contract' 'contractual Obligation to Procure Insurance' 'common Law and Statutory Liability Cover' 'occupier Liability Claim Arising From Employee Injury' 'cross Claim for Breach of Contract']
['contract Law' 'insurance' 'civil Procedure'] ['construction of Contract' 'contractual Obligation to Procure Insurance' 'common Law and Statutory Liability Cover' 'occupier Liability Claim Arising From Employee Injury' 'cross Claim for Breach of Contract']

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Procedural Posture

Appeal Concerning Construction of a Contract and Breach of Contractual Insurance Obligation / Ex Tempore Judgment of the New South Wales Court of Appeal From a District Court Judgment

Legal Issues

  1. 1 ["Whether clause 9.1.2 of the Security Contract required Chubb to provide the Commonwealth with insurance cover for all liabilities at common law and under statute arising from personal injury or death of Chubb employees in connection with performance of the contract, or only workers' compensation type cover." "Whether Chubb breached the Security Contract by failing to obtain insurance cover for the Commonwealth in respect of Ms Manning's claim."]

Ratio Decidendi

On the proper construction of clauses 9.1.1 and 9.1.2, Chubb was required to obtain and extend to the Commonwealth insurance cover for liabilities for personal injury or death to Chubb employees arising at common law or under statute in connection with performance of the Security Contract. The obligation was not confined to workers' compensation type cover. Because Chubb did not obtain such cover, it breached the contract and was liable to the Commonwealth for the amount of Ms Manning's judgment and related costs.

Court Disposition

Appeal allowed with costs; District Court judgment set aside; judgment entered for the Commonwealth on the cross-claim.

Orders

  • ['Appeal allowed with costs.' 'Judgment for the cross-defendant on the cross-claim set aside.' 'In lieu thereof, substitute judgment for the Commonwealth on the cross-claim for $105,375 together with the costs payable by the Commonwealth to Uma Manning pursuant to the judgment in her favour of 3 March 2003.' "Order...