There has recently been some litigation in higher courts
concerning conditions in insurance policies requiring an insured to
take reasonable care or precautions to prevent loss or damage. A
review of these authorities is a useful reminder of the very
limited circumstances under which these conditions operate.
In April 2016, the NSW Court of Appeal (NSWCA) handed down its
decision in Barrie Toepfer Earthmoving and Land Management Pty
Ltd v CGU Insurance Ltd [2016] NSWCA 67 (Barrie
Toepfer). This case concerned damage to a bridge caused when
an excavator, carried on a prime mover, struck several spans of the
bridge. As the owner of the bridge, the RTA brought proceedings
against Barrie Toepfer Earthmoving and Land Management Pty Ltd
(Toepfer), claiming damages for the cost of repair. Toepfer's
employee, Mr Luck, had been driving the prime mover when the
accident occurred.
