Aon Risk Services Australia Limited v Australian National University

The High Court of Australia heard an appeal from the Court of Appeal of the Supreme Court of New South Wales in a dispute between Aon Risk Services Australia Limited (Aon) and the Australian National University (ANU). The core of the dispute concerned the proper construction of an insurance policy and whether ANU was entitled to indemnity from Aon for certain losses it incurred.

The High Court was required to determine, among other things, whether the Court of Appeal had erred in its interpretation of the insurance policy, particularly in relation to the scope of coverage for certain types of claims and the application of exclusion clauses. A key issue was whether the policy covered losses arising from the alleged negligence of ANU in its management of superannuation funds.

The High Court's reasoning focused on the principles of contractual interpretation, emphasizing the importance of giving effect to the plain and ordinary meaning of the words used in the policy, read in context. The Court considered the commercial purpose of the insurance contract and the reasonable expectations of the parties. It analysed the specific wording of the policy, including definitions and exclusion clauses, to ascertain the extent of the indemnity provided. The Court ultimately found that the losses ANU sought to recover were not covered by the policy as construed according to established principles of contract law.

The High Court allowed the appeal, setting aside the orders of the Court of Appeal and ordering that ANU's claim for indemnity be dismissed.