Solarus Projects Pty Ltd (Receivers and Managers appointed) (in Liquidation) v AAI Limited Trading as Vero Insurance (No 8) [2015] NSWSC 412

Solarus Projects Pty Ltd (Receivers and Managers appointed) (in Liquidation) v AAI Limited Trading as Vero Insurance (No 8) [2015] NSWSC 412

Sub-paragraph (b) of the definition of Insured was construed businesslike and contextually as extending to companies and organisations subsidiary to, affiliated with, or associated with the named insured, Glen Alpine Properties Pty Ltd. Solarus and Properties were under the legal and actual control of Mr Bega, formed part of the Glen Alpine Group, and had a community of business interests and a relationship going beyond arm's length dealings. Solarus was therefore at least an associated company of Properties and was an insured under sub-paragraph (b) during both flood periods.

Jurisdiction
Australia
Judgment Date
14 April 2015
Procedural Posture
Insurance Contract Proceedings Concerning Indemnity Under a Project Contract Works Insurance Policy / Determination of Separate Questions Under R 28.2 Uniform Civil Procedure Rules 2005 (nsw)
Outcome
Separate questions answered in favour of Solarus; Solarus was an insured under the policy during both flood periods by operation of sub-paragraph (b) of the definition of Insured.
Legal Topics
['project Contract Works Insurance' 'interpretation of Insurance Policy' 'meaning of Insured' 'unnamed Insured' 'associated or Affiliated Companies' 'separate Questions']
['insurance' 'contract Law' 'civil Procedure'] ['project Contract Works Insurance' 'interpretation of Insurance Policy' 'meaning of Insured' 'unnamed Insured' 'associated or Affiliated Companies' 'separate Questions']

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Procedural Posture

Insurance Contract Proceedings Concerning Indemnity Under a Project Contract Works Insurance Policy / Determination of Separate Questions Under R 28.2 Uniform Civil Procedure Rules 2005 (nsw)

Legal Issues

  1. 1 ['Whether Solarus Projects Pty Ltd was an insured within the meaning of the Project Contract Works Insurance Policy during the Townsville flood occurring over the period 13 January to 17 February 2008.' 'Whether Solarus Projects Pty Ltd was an insured within the meaning of the Project Contract Works Insurance Policy during the Townsville flood occurring over the period 13 January to 4 February 2009.' 'Whether Solarus was an affiliated or associated company under sub-paragraph (b) of the definition of Insured.' 'Whether Solarus was a financier under sub-paragraph (c) of the definition of Insured.' 'Whether Solarus was a Contractor and/or Sub-Contractor under sub-paragraph (d) of the definition of Insured.' 'Whether contractual rectification should substitute Solarus for Properties as the named insured under sub-paragraph (a) of the definition of Insured.']

Ratio Decidendi

Sub-paragraph (b) of the definition of Insured was construed businesslike and contextually as extending to companies and organisations subsidiary to, affiliated with, or associated with the named insured, Glen Alpine Properties Pty Ltd. Solarus and Properties were under the legal and actual control of Mr Bega, formed part of the Glen Alpine Group, and had a community of business interests and a relationship going beyond arm's length dealings. Solarus was therefore at least an associated company of Properties and was an insured under sub-paragraph (b) during both flood periods.

Court Disposition

Separate questions answered in favour of Solarus; Solarus was an insured under the policy during both flood periods by operation of sub-paragraph (b) of the definition of Insured.

Orders

  • ['Question 1 - During the Townsville flood occurring over the period 13 January to 17 February 2008 was Solarus Projects Pty Ltd an insured within the meaning of the Project Contract Works Insurance Policy issued to Glen Alpine Properties Limited and others numbered CTS010377771 dated 2nd May 2007? Answer Yes, by...