Cic Insurance Ltd v Bankstown Football Club Ltd [No 2]

CIC Insurance Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales which had found in favour of Bankstown Football Club Ltd (the respondent). The dispute concerned the interpretation of a public liability insurance policy and whether it covered certain liabilities arising from a fire at the respondent's premises.

The primary legal issues before the Court of Appeal were whether the policy provided indemnity for the respondent's liability to a third party for damage caused by the fire, and whether the appellant was estopped from denying coverage. Specifically, the court had to determine if the policy's exclusion clauses were applicable and if the appellant's conduct in handling the claim amounted to a representation that the loss was covered, thereby preventing it from relying on those exclusions.

The Court of Appeal, in its reasoning, considered the principles of contractual interpretation, particularly in the context of insurance policies. It analysed the wording of the policy, including the insuring clauses and the exclusion clauses, to ascertain the parties' intentions. The court also examined the doctrine of estoppel, considering whether the appellant's actions, such as continuing to investigate the claim without immediately disclaiming liability, created an assumption in the respondent that the loss was covered. The court found that the exclusion clauses were not applicable to the circumstances of the fire and that the appellant was estopped from denying indemnity.

Consequently, the Court of Appeal dismissed the appeal and affirmed the decision of the Supreme Court, holding that the appellant was liable to indemnify the respondent for the loss suffered.