High Court holds insurer cannot rely on an ‘efficacy’ exclusion clause

Selected Seeds Pty Limited v QBEMM Pty Limited [2010] HCA 37

Legal history

In the July edition of Legal Directions, the authors reviewed oral arguments presented in the Selected Seeds' special leave application to the High Court. Selected Seeds sought to have the Queensland Court of Appeal's 2009 decision overturned. That decision allowed QBE's appeal concerning the interpretation of a broadform liability insurance policy.

The High Court allowed the appeal and restored the judgment of the trial judge that, Selected Seeds was entitled to be indemnified under its policy with QBE.

The High Court's judgment provides a timely reminder of the basic principles of contractual interpretation.