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ARTICLE · 06 MARCH 2018

Subcontracting agreements and insurance: Tow operators, trailers and terms

Cooper Grace Ward
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Transport operators should carefully consider obligations in sub-contracting agreements to take out insurance.

AustraliaEmployment and HR
Tony Park
Tony Park
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The recent Queensland District Court decision of Lyschrome Pty Ltd v Peter Cusato Transport (a Firm) [2017] QDC 162 illustrates the need for transport operators to carefully consider the terms of subcontracting agreements and any obligations in those agreements to take out particular insurance policies.

WHAT HAPPENED?

JAT Refrigerated Road Services Pty Ltd sued Peter Cusato Transport to recover the value of two refrigerated trailers, towed pursuant to a subcontracting agreement.

JAT entered into a subcontracting agreement (commonly termed a tow operator agreement) with Peter Cusato Transport. Under the agreement, Peter Cusato agreed to:

  1. use its prime mover to transport two maxi-cube refrigerated trailers owned or leased by JAT;

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