Livesay v Hawkins

The case of Livesay v Hawkins involved the plaintiff, Livesay, who brought an action against Hawkins, the third defendant, and others. The primary dispute centred around a professional indemnity insurance policy held by Hawkins with the first third party, an insurance company. Hawkins had issued a third party notice claiming that the insurance company should indemnify Hawkins against any civil liability to Livesay. The insurance company denied any obligation to indemnify Hawkins, leading to a hearing for the determination of several specific issues. The court was tasked with deciding whether Livesay's letter to Hawkins constituted a "claim" under the policy, if the statutory provisions of the Insurance Contracts Act 1984 (Cwth) precluded the insurance company from refusing to pay due to Hawkins' failure to notify the company promptly, whether the policy's exclusion for "bodily injury" was applicable, and if Hawkins was entitled to indemnification under the policy.

The court examined the definition of "claim" in the insurance policy and found that Livesay's letter indeed qualified as such. It further determined that it was unnecessary to address whether statutory provisions under the Insurance Contracts Act could override the insurance company's refusal to indemnify due to the lack of prompt notice. Regarding the policy exclusion for "bodily injury," the court ruled that this exclusion applied. Consequently, the court concluded that Hawkins was not entitled to indemnification under the policy terms. The court scheduled a future hearing to address the issue of costs.

The court's decision provided clarity on the applicability of the insurance policy terms and statutory obligations, ultimately ruling in favour of the insurance company and against Hawkins' claim for indemnification.