Intergraph Best (Vic) Pty Ltd v QBE Insurance Ltd

Intergraph Best (Vic) Pty Ltd sought indemnity from QBE Insurance Ltd for costs incurred in connection with the representation of its directors and officers before a Royal Commission. The dispute was heard in the Supreme Court of Victoria. The key legal issue before the court was whether the insurance policy provided cover for the costs incurred by the corporation in representing its directors and officers before the Royal Commission, or whether such cover was restricted to costs incurred directly by the directors and officers themselves.

The court held that the policy did not provide indemnity for costs incurred by the corporation in representing its directors and officers before the Royal Commission. The court found that the directors and officers were not obligated to pay such costs, and therefore, the corporation was not entitled to indemnity under the policy. The court reasoned that to interpret the policy as providing such indemnity would alter its commercial character and contradict the fundamental principle that the insured party cannot recover more than the actual loss incurred. The court also noted the relevance of United States authority in reaching its decision.

The court ordered that QBE Insurance Ltd was not liable to pay Intergraph Best (Vic) Pty Ltd for the costs incurred in representing its directors and officers before the Royal Commission. The court's decision was based on the interpretation of the policy and the principle that the insured party cannot recover more than the actual loss incurred. The court found that the policy did not provide cover for the costs incurred by the corporation and that to interpret the policy as providing such cover would alter its commercial character.