ARTICLE · 12 NOVEMBER 2008

Sydney Airport´s Third Runway Insurance Dispute – BHE Loses Second Round

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Balderstone Hornibrook Engineering Pty Limited ('BHE') has lost an appeal to the NSW Court of Appeal against a finding that it was not entitled to cover under professional indemnity policies put in place for the benefit of all consultants working on the design of Sydney Airport's third runway.

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Balderstone Hornibrook Engineering Pty Limited v Gordian Runoff Ltd & Ors [2008] NSWCA 243

Balderstone Hornibrook Engineering Pty Limited ('BHE') has lost an appeal to the NSW Court of Appeal against a finding that it was not entitled to cover under professional indemnity policies put in place for the benefit of all consultants working on the design of Sydney Airport's third runway. The decision was on the basis that the claim related to construction defects which fell outside the scope of the insuring clause of the policies and was subject to clauses excluding liability for defective construction.

Background

The background to the claim and decision at first instance were summarised in our June 2006 edition of Legal Directions. BHE was appointed by the Federal Airports Commission (now the Sydney Airports Corporation Limited ('SACL')) in 1992 as the head contractor responsible for the design and construction of the third runway at Sydney's Kingsford Smith

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