Moltoni Corporation Pty Ltd v QBE Insurance Ltd P92/2000

Moltoni Corporation Pty Ltd (Moltoni) sought to recover from QBE Insurance Ltd (QBE) under a policy of insurance. The dispute concerned whether QBE was liable to indemnify Moltoni for losses arising from the collapse of a wall at a construction site. Moltoni contended that the loss was covered by the policy, while QBE argued that the loss was excluded by certain policy conditions. The case was heard by the High Court of Australia.

The High Court was required to determine whether the loss suffered by Moltoni was an insured event under the policy, and if so, whether any exclusions within the policy operated to deny indemnity. Specifically, the court had to consider the interpretation of the policy wording concerning accidental damage and the application of exclusions relating to faulty workmanship or design.

The High Court held that the policy covered the loss. The court reasoned that the collapse of the wall constituted an "occurrence" as defined in the policy, and that the damage was not excluded by the faulty workmanship or design clauses. The principles applied focused on the construction of insurance policies, emphasizing that exclusions must be construed strictly against the insurer and that the policy should be read as a whole to ascertain the parties' intentions. The court found that the damage was a direct consequence of the occurrence and not merely a manifestation of a pre-existing defect.

The High Court allowed Moltoni's appeal, setting aside the judgment of the Full Federal Court and ordering that QBE indemnify Moltoni for its loss.