Bakerland Pty Ltd v Coleridge

Bakerland Pty Ltd (the plaintiffs) brought proceedings against Coleridge (the defendant) concerning an insurance claim for storm damage to a building. The dispute centred on the extent of the insurer's liability for the damage, specifically whether the insured was entitled to the indemnity value of the building viewed in isolation from the land, and whether the insured had suffered a loss as a result of the collapse. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issues before the court were: (1) the proper measure of indemnity for the damaged building, particularly whether it should be valued independently of the land; (2) whether the insured had been rendered worse off by the collapse; (3) whether there had been errors in the evidentiary rulings made at trial; and (4) whether the insured had adequately proven the costs associated with the removal of debris. The court also considered the entitlement to interest.

The Court of Appeal allowed the appeal in part. It set aside the original verdict and judgment for the defendant and entered judgment for the plaintiffs against the defendant for $30,388.93. The court also varied the costs orders, with the plaintiffs to pay three-quarters of the defendant's costs at trial and three-quarters of the respondent's costs of the appeal.