Cigna Insurance Australia Ltd v General Newspapers Pty Ltd

Cigna Insurance Australia Ltd (Cigna) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the interpretation of a public liability insurance policy issued by Cigna to General Newspapers Pty Ltd (General Newspapers), specifically in relation to whether the policy covered certain claims made against General Newspapers.

The Court of Appeal was required to determine whether the policy's exclusion clause, which excluded liability for claims arising from "any dishonest, fraudulent, criminal or malicious act or omission," applied to the circumstances giving rise to the claims against General Newspapers. This involved considering the nature of the acts or omissions of General Newspapers' employees and whether they fell within the scope of the exclusion.

The Court analysed the wording of the exclusion clause and the factual matrix surrounding the claims. It held that the exclusion applied only to acts or omissions that were dishonest, fraudulent, criminal, or malicious in themselves, and not to acts or omissions that were merely negligent or careless, even if those acts or omissions had dishonest or fraudulent consequences. The Court emphasised that the exclusion required a direct intention to act dishonestly, fraudulently, criminally, or maliciously.

The appeal was dismissed, with the Court of Appeal affirming the Supreme Court's decision that the claims against General Newspapers were covered by the insurance policy.