Citiline Concrete Pumping Pty Ltd v Chubb Insurance Australia Ltd

Citiline Concrete Pumping Pty Ltd appealed a decision of the primary judge concerning a claim under a plant and equipment insurance policy issued by Chubb Insurance Australia Ltd. The dispute arose from a claim made by Citiline following damage to its concrete pumping equipment. Chubb denied liability, asserting that Citiline had engaged in non-disclosure and misrepresentation regarding the insured equipment.

The central legal issues before the Court of Appeal were whether the primary judge erred in finding that Citiline had failed to disclose material facts and had made misrepresentations concerning the insured equipment, and consequently, whether Chubb was entitled to reduce its liability under the policy to nil. The court was required to consider the principles of non-disclosure and misrepresentation in insurance law, particularly in the context of a commercial insurance policy.

The Court of Appeal upheld the primary judge's findings. The court reasoned that Citiline had failed to disclose significant information about the age and condition of the concrete pumping equipment, which was material to Chubb's assessment of the risk. Furthermore, misrepresentations were made regarding the equipment's operational status and maintenance history. Applying established principles of insurance law, the court concluded that these failures constituted a breach of Citiline's duty of disclosure and were material to the risk undertaken by Chubb, thereby entitling the insurer to avoid liability.

The appeal was dismissed, and Citiline was ordered to pay Chubb's costs, including the costs associated with Chubb's motion filed on 30 January 2023.