Dino Dinov v Allianz Australia Insurance Limited

The appeal concerned a dispute between Dino Dinov, a director of a building company, and Allianz Australia Insurance Limited. Allianz had issued a builder's home warranty insurance policy indemnifying the owner against defective building work. Mr. Dinov, along with other directors, had provided indemnities to Allianz against their liability under that policy. The central question before the Court of Appeal of New South Wales was whether an action brought by Allianz to enforce these indemnities was barred by section 109ZK of the *Environmental Planning and Assessment Act 1979* (NSW).

The court was required to determine whether an action to enforce the director's indemnity to the insurer constituted a "building action" as defined by the *Environmental Planning and Assessment Act 1979*. This definition is critical because section 109ZK imposes a time limit on commencing such actions.

The Court of Appeal reasoned that the indemnity provided by the directors to Allianz was a contractual agreement separate from the building work itself. It was an agreement to reimburse the insurer for any liability it incurred under the home warranty policy. The court held that the enforcement of this indemnity was not a "building action" within the meaning of the Act, as it did not directly concern the construction, alteration, or repair of a building, nor did it seek to remedy defective building work. Therefore, the time limitation imposed by section 109ZK did not apply to Allianz's claim to enforce the indemnity.

The appeal was dismissed, and Mr. Dinov was ordered to pay Allianz's costs.