Kavanagh v New South Wales Self Insurance Corporation

The matter before the court involved Kavanagh, the appellant, and the New South Wales Self Insurance Corporation, the respondent. The dispute arose from a claim made by Kavanagh under a building cover contract for work completed by a builder. The insurer denied the claim, prompting Kavanagh to appeal that decision. The court was required to determine whether the policy provision excluded coverage and whether the successor in title had an interest in the work, given that the work was not completed by the builder.

The court examined the policy provision in question, focusing on whether it excluded coverage for the claim. It considered whether the successor in title had an interest in the work, despite the builder's failure to complete it. The court evaluated the nature of the claim and the obligations of both parties under the contract. It assessed whether the insurer's decision to deny the claim was justified based on the terms of the policy and the circumstances surrounding the incomplete work.

After thorough deliberation, the court found that the insurer's decision to deny the claim was flawed. It concluded that the policy provision did not exclude coverage for the claim and that the successor in title indeed had an interest in the work, despite the builder's non-completion. The court set aside the insurer's decision and ordered that the claim be reconsidered according to law. The appeal was allowed, and the decision made by the insurer on 24 February 2023 was annulled.