CGU Insurance Limited v Corrections Corporation of
Australia Staff Superannuation Pty Ltd [2008] FCAFC 173
considered the interpretation of a 'Notification of Claims
Circumstances' clause. The case examined an insured's
awareness of facts and circumstances during the policy period for a
claim that was made after the expiry of the policy period and
whether the insured was entitled to rely on the clause. The Full
Court of the Federal Court held that it was.
Facts
The Corrections Corporation of Australia Staff Superannuation
Pty Ltd (CCAS) was the trustee of a superannuation fund (fund)
maintained for employees of Australian Integration Management
Services Pty Ltd (AIMS). AIMS operated state prisons under
contracts with state governments. Due to what was described by the
primary judge as the 'liquidity crisis of the fund', a
number of damages claims were made against CCAS and its directors
for breach of duty as well as against AIMS, by AIMS employees.
