NSW Arabian Horse Association Inc v Olympic Co-ordination Authority

The NSW Arabian Horse Association Inc (the Association) appealed to the Court of Appeal from a decision concerning its obligations under a contract with the Olympic Co-ordination Authority (the Authority). The dispute arose from an accident where two individuals, attending an event organised by the Association at a facility managed by the Authority, fell into a culvert while en route to their car. The Association argued that it was not liable for the injuries sustained by these individuals, as the accident occurred in an area not directly related to the equestrian activities of the event, and therefore not covered by the public liability insurance it was contractually obliged to obtain.

The Court of Appeal was required to determine the proper interpretation of clause 6 of the contract, which mandated the Association to hold public liability insurance "for the Event." Specifically, the court had to consider whether the phrase "for the Event" encompassed liabilities arising from accidents occurring in areas adjacent to the event site, such as the car park and the path to it, and whether the specific accident in the culvert had a direct and proximate relationship to the Event itself. A further issue was whether clause 6 should be read in conjunction with clause 22, which dealt with indemnity, and if so, how that affected the scope of the insurance obligation.

The court reasoned that clause 6, requiring public liability insurance "for the Event," should not be narrowly construed to apply only to the immediate equestrian activities. It held that the word "for" in this context, and drawing on precedent such as *State Government Insurance Office (Queensland) v Crittenden*, was capable of having the widest possible meaning, signifying a connection or relation between the insurance cover and the Event. The court found that the Association's argument that clause 6 was confined by clause 22 was untenable, particularly as the indemnity clause contained exceptions for the Authority's own negligence, which would be precisely the circumstance where public liability insurance would be most relevant for the Authority's protection. The court concluded that the accident, occurring while attendees were using facilities provided for the Event, fell within the scope of the insurance required by clause 6.

The Court of Appeal dismissed the Association's appeal, upholding the decision that the Association was responsible for the costs associated with the summons for leave to appeal and the appeal itself on an indemnity basis.