Liberty Mutual Insurance Company v Kellogg Brown and Root Pty Ltd [2017] NSWSC 1519

Liberty Mutual Insurance Company v Kellogg Brown and Root Pty Ltd [2017] NSWSC 1519

On the proper construction of the PSPI Policy, 'Additional Insurance' refers to insurance of the kind particularised in the Schedule as the insureds were obliged to effect and maintain under their contractual obligations during the Pipeline Project, not an exhaustive list limited to the Schedule at inception; accordingly, the plaintiffs' liability is in excess of such insurances effected and maintained for the duration required by contract.

Jurisdiction
Australia
Judgment Date
10 November 2017
Procedural Posture
Equity Commercial List / Principal Judgment
Outcome
Declaration as to the proper construction of the PSPI Policy granted; no further or hypothetical declarations made.
Legal Topics
['project Specific Indemnity Policy' 'construction of Insurance Policies' 'terms of Excess Insurance' 'interpretation of Contracts']
['insurance Law' 'contract Law'] ['project Specific Indemnity Policy' 'construction of Insurance Policies' 'terms of Excess Insurance' 'interpretation of Contracts']

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Procedural Posture

Equity Commercial List / Principal Judgment

Legal Issues

  1. 1 ['Proper construction of project specific professional indemnity policy' "Whether insurers' liability is in excess of insurance insureds obliged to effect and maintain under project documents"]

Ratio Decidendi

On the proper construction of the PSPI Policy, 'Additional Insurance' refers to insurance of the kind particularised in the Schedule as the insureds were obliged to effect and maintain under their contractual obligations during the Pipeline Project, not an exhaustive list limited to the Schedule at inception; accordingly, the plaintiffs' liability is in excess of such insurances effected and maintained for the duration required by contract.

Court Disposition

Declaration as to the proper construction of the PSPI Policy granted; no further or hypothetical declarations made.

Orders

  • ["Declaration to be made that plaintiffs' liability under the PSPI Policy is in excess of professional indemnity cover effected and maintained by insureds pursuant to their contractual obligations under the project." 'Parties invited to bring in short minutes to give effect to these reasons.' "Court will hear...