Professional Indemnity: Interpreting contracts of insurance

Livesay v Hawkins & Ors (2012) 17 ANZ Insurance Cases 61 - 933

Introduction

A recent decision of the Supreme court of Queensland once again highlights that the terms of a contract of insurance are to be construed by reference to what a reasonable person armed with knowledge of the surrounding circumstances at the time of entry into the contract would consider the terms to mean.

Background

Proceedings were commenced by the plaintiff, Shirley Livesay, against the first and second defendants, Jeremy and Gaylene Hawkins, and the third defendant, Neville Newman.

Ms Livesay was the tenant of a residential premises owned by Mr and Mrs Hawkins. Mr Newman was the real estate agent engaged by Mr and Mrs Hawkins to perform property management services in relation to the residential premises.