Cic Insurance Limited v Bankstown Football Club Limited

The New South Wales Court of Appeal considered a dispute between CIC Insurance Limited and Bankstown Football Club Limited concerning an insurance policy. The Club sought to recover under a policy of insurance issued by CIC for losses it claimed to have suffered due to the alleged negligence of its former solicitor. The primary issue revolved around whether the policy covered the Club's claim, which CIC denied.

The Court was required to determine whether the policy of insurance issued by CIC to the Club provided cover for the loss claimed by the Club, which arose from the alleged negligence of its former solicitor. Specifically, the Court had to consider the interpretation of the insurance policy's terms and conditions, and whether the circumstances of the loss fell within the scope of coverage provided by the policy.

The Court of Appeal found that the insurance policy did not cover the loss claimed by the Club. The reasoning focused on the interpretation of the policy wording, particularly clauses relating to the scope of cover and exclusions. The Court held that the loss suffered by the Club was not a "legal liability" within the meaning of the policy, as it did not arise from a breach of a duty owed by the Club to a third party. Instead, the loss was a consequence of the Club's own decision-making process and its relationship with its solicitor, which was not covered by the policy. The appeal was dismissed.