CIC Insurance Ltd v. Bankstown Football Club Ltd
(1997) 187 CLR 384141 ALR 618
CIC INSURANCE LTD v. BANKSTOWN FOOTBALL CLUB LTD
Court:
Judges:
Brennan CJ, Dawson, Toohey and Gummow JJ
Gaudron J
Subject References:
Insurance
Industrial special risks insurance
General principles involving reinstatement policies
Construction of policy
Whether work carried out "with reasonable despatch"
Whether liability for subsequent damage prior to reinstatement rests with the insurer
Interpretation of Insurance Contracts Act 1984 (Cth)
Statutory policy
Whether statutory policy came into existence where insurer followed cancellation procedure laid down by Act
Interest on claim.
Legislative References:
Insurance Contracts Act 1984 (Cth) - ss 57; ss 58; ss 59; ss 60; Pt VII
Judgment date: 4 FEBRUARY 1997
CANBERRA
ORDER
1. Appeal allowed.
2. Save for paragraph 2 of the orders of the Court of Appeal, set aside the orders of the Court of Appeal and in lieu thereof declare that the appellant is obliged to pay to the respondent a sum representing the indemnity value of the damaged property at the time of the happening of the damage sustained in the first fire.
3. Cross-appeal dismissed.
4. Order that the parties have leave within 21 days to bring in short minutes specifying the sum payable pursuant to the declaration referred to in paragraph 2 of this Order including interest under s 57 of the Insurance Contracts Act 1984 (Cth) from 30 October 1992.
5. In default of agreement as to the amounts to be specified in the short minutes, remit the proceedings to the Supreme Court of New South Wales, Commercial Division, for the determination of the sum for which judgment should be entered against the appellant and for consideration of any further costs order made appropriate by the further steps taken in the Supreme Court.
6. Order that the parties file within 21 days written submissions as to the orders which should now be made as to costs of the proceedings before Cole J and of the appeal to the Court of Appeal.
7. The respondent pay the appellant's costs of the appeal and cross-appeal.