ARTICLE · 15 SEPTEMBER 2012

Professional Indemnity: Proving causation in loss of chance cases

Norton Rose Fulbright Australia

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The Court considered the relevant principles in loss of chance cases and the essential requirement to prove causation.

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Prosperity Advisers Pty Limited v Secure Enterprises Pty Limited t/a Strathearn Insurance Brokers [2012] – NSWCA 19

Introduction

The NSW Court of Appeal recently considered the relevant principles to be applied in loss of chance cases and in particular the essential requirement to prove causation.

Background

In mid January 2005, Prosperity Advisers Pty Limited (Prosperity), a company which provided accounting and financial services, asked its broker, Strathearn Insurance Brokers (Strathearn) to arrange a renewal of professional indemnity insurance. Strathearn obtained a number of quotes including one from QBE, which offered cover for Prosperity's accounting and financial planning services. The limit of indemnity was $2 million for any one claim and $6 million in the aggregate and a $40,000 deductible per claim.

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