AIG Insurance Ltd v Hanna

Court of Appeal

Supreme Court

New South Wales

• Summary available
• Amendment notes

Medium Neutral Citation:

AIG Australia Ltd v Hanna [2024] NSWCA 91

Hearing dates:

19 March 2024

Date of orders:

24 April 2024

Decision date:

24 April 2024

Before:

Payne JA at [1];
Mitchelmore JA at [2];
Griffiths AJA at [82]

Decision:

(1) The appeal is dismissed with costs.

Catchwords:

INSURANCE — public liability insurance — where insured was builder responsible for construction site — where formworker slipped and fell from scaffolding — where insurer repudiated the policy because of misrepresentations by insured — whether the policy responded to liability assumed by a consent judgment — whether insured needed to prove that he was liable to the formworker — whether the settlement amount was reasonable

APPEALS — amendment of notice of appeal — whether leave should be granted to run a new ground of appeal — where argument not put below — where argument may have been met by further evidence at trial

Legislation Cited:

Insurance Contracts Act 1984 (Cth)

Cases Cited:

CGU Insurance Ltd v AMP Financial Planning Pty Ltd (2007) 235 CLR 1; [2007] HCA 36

Distillers Co Bio-Chemicals (Aust) Pty Ltd v Ajax Insurance Co Ltd (1974) 130 CLR 1; [1974] HCA 3

James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53; [1998] HCA 78

Post Office v Norwich Union Fire Insurance Society Ltd [1967] 2 QB 363

Superannuation & Corporate Services Pty Ltd v Turner [2020] NSWCA 246

Vero Insurance Ltd v Baycorp Advantage Ltd [2004] NSWCA 390; 23 ACLC 199

Weir Services Australia Pty Ltd v AXA Corporate Solutions Assurance [2018] NSWCA 100; 359 ALR 314

Weir Services Australia Pty Ltd v AXA Corporate Solutions Assurance [2017] NSWSC 259

Category:

Principal judgment

Parties:

AIG Australia Ltd (Appellant)
George Hanna (Respondent)

Representation:

Counsel:
J Sexton SC / J Sleight (Appellant)
CP O’Neill (Respondent)

Solicitors:
McMahons Lawyers (Appellant)
Sanford Legal (Respondent)

File Number(s):

2023/00278712

Publication restriction:

Nil

 Decision under appeal 

Court or tribunal:

District Court

Jurisdiction:

Civil

Date of Decision:

31 August 2023

Before:

Gibb DCJ

File Number(s):

2021/233407

HEADNOTE

[This headnote is not to be read as part of the judgment]

The respondent, George Hanna, was the named insured in a policy of insurance with the appellant, AIG Insurance Ltd (AIG) (the Policy). The Policy related to a construction project (the Project). Pursuant to cl 5.00 of the Policy, AIG was required to indemnify Mr Hanna “for all sums that you become legally liable to pay as compensation”, subject to conditions not relevant to the appeal. Clause 10.01 provided that, unless Mr Hanna obtained AIG’s prior written consent, he was not to admit liability or settle any third-party claim.

In October 2018, whilst the Policy was in force, Mr Hasan, a formworker on the Project, was injured when he slipped and fell from scaffolding. In August 2020, Mr Hanna made a claim for indemnity under the Policy. In a telephone call with AIG’s solicitor in…