Elilade Pty Ltd v Nonpareil Pty Ltd [2002] FCA 909

Elilade Pty Ltd v Nonpareil Pty Ltd [2002] FCA 909

Elilade is entitled to indemnity under the CIC policy for damage to stock and plant and equipment that had occurred by the time of the second inundation (flood), as the initial inundation (insured event) was the proximate cause of that damage. Elilade's claim against Nonpareil fails because, although Nonpareil...

Source-derived case information.

Parties
Applicant: Elilade Pty Ltd (ACN 073 980 800); First Respondent: Nonpareil Pty Ltd (ACN 009 611 358); Second Respondent: CIC Insurance Limited (ACN 004 078 880)
Jurisdiction
Australia
Judgment Date
31 July 2002
Procedural Posture
Insurance and Negligence Claim / Judgment After Trial
Outcome
Judgment for applicant against CIC; claim against Nonpareil dismissed.
Legal Topics
Insurance Indemnity, Proximate Cause, Flood Exemption, Broker Duty of Care, Misrepresentation, Causation, Quantification of Loss
Insurance Law Tort Law Contract Law Insurance Indemnity Proximate Cause Flood Exemption Broker Duty of Care Misrepresentation +2 more

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Summary, issues, holding and outcome

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Parties

Elilade Pty Ltd (ACN 073 980 800)

Applicant

Nonpareil Pty Ltd (ACN 009 611 358)

First Respondent

CIC Insurance Limited (ACN 004 078 880)

Second Respondent

Procedural Posture

Insurance and Negligence Claim / Judgment After Trial

Legal Issues

  1. 1 Extent to which insurance policy covers loss caused by initial inundation as distinct from flood
  2. 2 Whether insurance broker owed and discharged a duty to advise of flood insurance and policy exemptions

Ratio Decidendi

Elilade is entitled to indemnity under the CIC policy for damage to stock and plant and equipment that had occurred by the time of the second inundation (flood), as the initial inundation (insured event) was the proximate cause of that damage. Elilade's claim against Nonpareil fails because, although Nonpareil breached its duty by not expressly advising on flood cover, Elilade failed to prove it would have acted to secure flood insurance even if so advised.

Court Disposition

Judgment for applicant against CIC; claim against Nonpareil dismissed.

Orders

  • Judgment entered for applicant (Elilade) against CIC Insurance Limited for $238,605.
  • CIC Insurance Limited to pay interest on $238,605 under s 57 Insurance Contracts Act 1984 from 1 January 1999.