Transfield Pty Limited v National Vulcan Engineering Insurance Group Limited & Ors Connell Wagner Pty Ltd v National Vulcan Engineering Insurance Group Ltd & Ors [2002] NSWSC 830

Transfield Pty Limited v National Vulcan Engineering Insurance Group Limited & Ors Connell Wagner Pty Ltd v National Vulcan Engineering Insurance Group Ltd & Ors [2002] NSWSC 830

Exclusion 3(b) in Section C of the policy operates only to exclude indemnity for damage to property owned by the insured entity making the claim. Therefore, each claimant insured is entitled to indemnity under Section C in relation to claims for damage to property owned by other insureds, and the insurer did not make a binding election to grant indemnity to Transfield based on its conduct.

Jurisdiction
Australia
Judgment Date
17 September 2002
Procedural Posture
Insurance Coverage Dispute / Determination of Separate Questions Based on Agreed Statement of Facts
Outcome
Declaration granted; each plaintiff insured is entitled to indemnity for claims relating to damage to property owned by other insured entities. The insurer did not make a binding election by its conduct.
Legal Topics
['contract Interpretation' 'indemnity' 'exclusions Clause' 'composite Policy' 'cross Liability Clause' 'election']
['insurance Law'] ['contract Interpretation' 'indemnity' 'exclusions Clause' 'composite Policy' 'cross Liability Clause' 'election']

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Procedural Posture

Insurance Coverage Dispute / Determination of Separate Questions Based on Agreed Statement of Facts

Legal Issues

  1. 1 ["Whether Exclusion 3(b) in Section C of the Contractors' Floater Policy No 95050032 excludes indemnity where a party insured under the policy causes damage to property owned by another insured party" 'Whether underwriters made a binding election to grant indemnity to Transfield pursuant to Section C of the Policy in respect of the claims for liability arising out of damage to property of Pearce and Elliott']

Ratio Decidendi

Exclusion 3(b) in Section C of the policy operates only to exclude indemnity for damage to property owned by the insured entity making the claim. Therefore, each claimant insured is entitled to indemnity under Section C in relation to claims for damage to property owned by other insureds, and the insurer did not make a binding election to grant indemnity to Transfield based on its conduct.

Court Disposition

Declaration granted; each plaintiff insured is entitled to indemnity for claims relating to damage to property owned by other insured entities. The insurer did not make a binding election by its conduct.

Orders

  • ['Transfield Pty Limited is entitled to indemnity under Section C for claims relating to its liability for damage to property of Pearce and Elliott.' 'Connell Wagner Pty Ltd is entitled to indemnity under Section C for claims relating to its liability for damage to property of Transfield, Pearce, and Elliott.'...