Globe Church Incorporated v Allianz Australia Insurance Ltd

Globe Church Incorporated (the plaintiff) brought proceedings against Allianz Australia Insurance Ltd (the defendant) concerning claims under a property insurance policy. The central dispute revolved around whether the plaintiff's claims for property damage, additional costs, business interruption, and professional fees were statute-barred due to the expiry of the limitation period. The matter came before the Court of Appeal of New South Wales.

The primary legal issue before the court was to determine the time at which the plaintiff's cause of action for damages for breach of contract under the indemnity policy arose. Specifically, the court had to decide whether the cause of action accrued at the time of the property damage itself, or at a later point, considering the existence of an implied term requiring performance within a reasonable time.

The Court of Appeal held that the cause of action for damages in relation to the 2008 Policy for Property Damages accrued at the time of the property damage, no later than 31 March 2008. Similarly, the claims for additional costs, business interruption, and professional fees accrued no later than the end of September 2009. The court answered the questions posed for separate determination accordingly.

Consequently, the proceedings against the defendant were dismissed with costs. The plaintiff was ordered to pay 50% of the aggregated costs of the defendants in respect of their applications for separate determination and the hearing in the Court of Appeal. The matter was remitted to the Common Law Division for further directions.