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ARTICLE · 15 AUGUST 2010

Courts Lower The Bar On Insurance ‘Claims’

Gadens Lawyers
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A number of recent decisions have considered what constitutes a ‘claim’, both as against an insured or under a policy. The trend in these cases has been to lower the bar so as to allow claims against the insurer to proceed.

AustraliaInsurance
Ray Giblett
Ray Giblett
Greg Moss
Greg Moss

A number of recent decisions have considered what constitutes a 'claim', both as against an insured or under a policy. The trend in these cases has been to lower the bar so as to allow claims against the insurer to proceed.

The recent decision of the New South Wales Supreme Court (the Court) in Eastern Creek Holdings Pty Limited v Axis Speciality Europe Limited [2010] NSWSC 840 has highlighted the difficulties insurers face when resisting an application for leave to commence proceedings against them pursuant to s 6(4) of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW) (the Act).

What went wrong?

In August 2006, Eastern Creek Holdings Pty Limited as principal (the Plaintiff) entered into a design and construction contract with Seana Constructions Pty Limited (Seana) for development of the Chifley Hotel in Eastern Creek, NSW.

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