Cic Insurance Limited v Bankstown Football Club Limited

The High Court of Australia considered an appeal from the Supreme Court of New South Wales concerning a dispute between CIC Insurance Limited and Bankstown Football Club Limited. The core of the disagreement revolved around the interpretation of a public liability insurance policy and whether it covered certain liabilities arising from the Club's operations.

The central legal question before the High Court was whether the policy, which contained a clause excluding liability for "any liability for loss or damage to property caused by or arising out of or in connection with any defective workmanship or any defective material," extended to cover the Club's liability for damage caused by faulty electrical wiring installed by a contractor engaged by the Club. The Court had to determine the scope and application of this exclusion clause in the context of the Club's liability to third parties.

The High Court, in a joint judgment, held that the exclusion clause was not limited to situations where the insured itself was responsible for defective workmanship or materials. Instead, the Court found that the clause operated to exclude liability for loss or damage caused by defective workmanship or materials, regardless of who performed the work or supplied the materials. The Court reasoned that the policy insured against liabilities arising from the Club's operations, and if those operations involved the use of defective workmanship or materials, leading to loss or damage, then the exclusion applied. The appeal was allowed, and the judgment of the Supreme Court of New South Wales was set aside.