Star Entertainment Group Limited v Chubb Insurance Australia Ltd (No 2) [2022] FCA 16

Spoilage claims fall within the material damage indemnity under the policy, and are subject to the material damage deductible stated in the policy; as the spoilage claim is under $750,000, and there is no other material damage claim, the claim for indemnity fails.

Jurisdiction: Australia
Judgment Date: 19 January 2022
Procedural Posture: Commercial Contracts, Banking, Finance and Insurance – Insurance List / Final Hearing and Disposition
Outcome: Application dismissed with costs.
Legal Topics: ['construction of Insurance Policy' 'deductibles in Insurance' 'spoilage Claims' 'sub Limits of Liability']

['insurance Law' 'commercial Law'] ['construction of Insurance Policy' 'deductibles in Insurance' 'spoilage Claims' 'sub Limits of Liability']

Case Brief

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Procedural Posture

Commercial Contracts, Banking, Finance and Insurance – Insurance List / Final Hearing and Disposition

Legal Issues

1 ['Whether a deductible applies to spoilage claims under the policy' 'Interpretation of policy extensions and memoranda regarding the application of deductibles' 'Effect of absence of express deductible for spoilage']

Ratio Decidendi

Court Disposition

Application dismissed with costs.

Orders

['The claim for declaratory relief in prayer 3A(b) be dismissed with costs.' 'The Amended Originating Application otherwise be dismissed with costs.' 'The costs in Orders 1 and 2 to be agreed or assessed.']