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ARTICLE · 16 JUNE 2023

Sufficient notification of "facts" in cladding claim

Gilchrist Connell
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Direction for insurers dealing with notifications of facts about unsafe ACP products and cladding claims.

AustraliaInsurance
Katherine Czoch
Katherine Czoch
Julian Peake
Julian Peake
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The recent Federal Court of Australia decision in MS Amlin Corporate Member Limited v LU Simon Builders Pty Ptd 1 gives direction for insurers dealing with notifications of facts on a wider problem concerning the unsafe ACP products used by their insureds that might give rise to cladding claims.

Background

Three sets of proceedings were commenced against LU Simon Builders Pty Ltd and LU Simon Builders (Management) Pty Ltd (Insureds) for alleged breaches concerning the use of ACPs as cladding for the construction of a 36-storey building in Melbourne, known as the Atlantis Towers. It was asserted that the cladding was combustible and not fire-resistant, thereby not suitable to be used in the external walls of the building (Atlantis Claims).

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