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ARTICLE · 13 OCTOBER 2008

Insurer Found Liable For Default Judgment Entered Against Its Insured

On 23 May 2008, the Full Court of the South Australia Court of Appeal handed down judgment in the long running saga of QBE Insurance Limited v Nguyen

AustraliaInsurance

On 23 May 2008, the Full Court of the South Australia Court of Appeal handed down judgment in the long running saga of QBE Insurance Limited v Nguyen.

Doyle CJ, Gray J and Layton J unanimously dismissed QBE's appeal and held that QBE was required to indemnify the bankrupt estate of its insured such that the plaintiff was entitled to recover from QBE the judgment he obtained by default against QBE's insured.

Consideration was given to what is necessary to establish a 'legal liability' and also whether the event giving rise to the plaintiff's injury was an 'occurrence in connection with' the insured's business.

Background

In 1995 the then 20 year old plaintiff, Mr Nguyen, was attacked and stabbed with a knife, rendering him paraplegic. The attack happened when the plaintiff was leaving a function. The organisers of the function had hired a security firm run by Mr Hiotis to provide security.

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