Ce Heath Casualty & General Insurance Ltd v East End Real Estate Pty Ltd trading as City Living

The applicant, C.E. Heath Casualty & General Insurance Ltd, sought special leave to appeal to the High Court of Australia concerning the interpretation of section 54(1) of the *Insurance Contracts Act 1984* (Cth). The dispute arose from a professional indemnity insurance policy that covered claims made against or notified by the insured during the policy period. The respondent was East End Real Estate Pty Ltd, trading as City Living.

The central legal issue before the Court was the proper construction and application of section 54(1) of the *Insurance Contracts Act 1984* in the context of a "claims made" professional indemnity policy. Specifically, the Court was required to determine whether section 54(1), which addresses an insurer's ability to refuse a claim due to an act or omission of the insured or another person, operated to provide relief in circumstances where a claim was made against the insured within the policy period but was not notified to the insurer within that same period.

The applicant argued that section 40 of the Act, which specifically deals with "claims made" policies, provided a limited exception to the general rule that claims must be notified within the policy period. It was contended that section 40 did not grant relief where a claim was made against the insured within the period but not notified to the insurer within that time. In contrast, section 54(1) was presented as a general provision applicable to all insurance contracts, and the applicant sought to persuade the Court that it did not override the specific limitations imposed by section 40 in this context. The Court was considering whether to grant special leave to appeal on this point of statutory interpretation.