Buckled Tracks Near Miss For Insurer

Trident General Insurance Co Ltd v McNiece Bros Pty Ltd [1988], recognised an exception to the doctrine of privity of contract where a contract is classified as a "liability insurance contract" and that a third party may sue on that contract where it is expressed to be insured by it.

A third party subcontractor recently attempted to broaden the scope of Trident to obtain indemnity from its head contractors under a works contract. The court refused to broaden the scope and held that a third party could not succeed where the contract relied upon is not a "liability insurance contract".

On 6 October 2000, a Cityrail train owned by the State Rail Authority of NSW (SRA) left the rails as it approached Kingsgrove Station on the East Hills line. A number of people were injured and both the train and the track and its infrastructure suffered severe damage.