The Exclusion For Known Circumstances – What Is "Known"

CGU Insurance Limited v. Porthouse [2008] HCA 30 (30 July 2008) This latest High Court authority provides protection for insurers from the subjective opinions of their insureds.

Facts

Counsel was sued. He was negligent in a failure to advise a plaintiff in relation to personal injury proceedings.

Counsel made a claim against his insurer CGU under his professional indemnity policy.

At the time counsel ("the insured") filled out his proposal to CGU, he said he had no knowledge of any circumstances that would lead to a claim against him.

The facts however were that soon thereafter a Claim was made against him, the foundation for which occurred before he filled out the proposal. This "foundation"included that a stay of judgment in the personal injury proceedings had been granted pending appeal. If the appeal in the personal injury proceedings was successful, this would mean that the insured