Strategic Property Holdings No. 3 Pty Ltd v Austbrokers RWA Pty Ltd [2012] NSWSC 1570

Strategic Property Holdings No. 3 Pty Ltd v Austbrokers RWA Pty Ltd [2012] NSWSC 1570

The broker breached both the implied terms of its retainer and its duty of care by failing to advise Strategic about the effect and adequacy of the accidental damage sub-limit, causing loss. Higher sub-limits were available and would have been obtained if proper advice was given. The damages suffered by Strategic were not too remote and causally linked to the breach.

Parties
First Plaintiff: Strategic Property Holdings No. 3 Pty Limited; Second Plaintiff: Eclipse Property Group Limited; First Defendant: Austbrokers RWA Pty Limited; Second Defendant: Austbrokers Sydney Pty Limited
Jurisdiction
Australia
Judgment Date
14 December 2012
Procedural Posture
Professional Negligence Claim / Principal Judgment
Outcome
Plaintiff entitled to damages
Legal Topics
Insurance Broker Liability, Duty of Care, Implied Contractual Terms, Causation, Mitigation of Damages, Policy Interpretation
Professional Negligence Insurance Law Contract Law Tort Law Insurance Broker Liability Duty of Care Implied Contractual Terms Causation +2 more

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Parties

Strategic Property Holdings No. 3 Pty Limited

First Plaintiff

Eclipse Property Group Limited

Second Plaintiff

Austbrokers RWA Pty Limited

First Defendant

Austbrokers Sydney Pty Limited

Second Defendant

Procedural Posture

Professional Negligence Claim / Principal Judgment

Legal Issues

  1. 1 Did the broker breach retainer and duty of care by failing to advise on and secure adequate coverage?
  2. 2 Was the broker liable for misleading or deceptive conduct under statutory provisions?
  3. 3 Whether the policy sub-limit for accidental damage applied and was appropriate?

Ratio Decidendi

The broker breached both the implied terms of its retainer and its duty of care by failing to advise Strategic about the effect and adequacy of the accidental damage sub-limit, causing loss. Higher sub-limits were available and would have been obtained if proper advice was given. The damages suffered by Strategic were not too remote and causally linked to the breach.

Court Disposition

Plaintiff entitled to damages