Vero Insurance Ltd v Australian Prestressing Services Pty Ltd

In *Vero Insurance Ltd v Australian Prestressing Services Pty Ltd*, the New South Wales Court of Appeal considered a dispute arising from an insurance contract between Vero Insurance Ltd (the appellant insurer) and Australian Prestressing Services Pty Ltd (the respondent insured). The insured incurred expenses to prevent the failure of a cofferdam wall, which had been damaged by substantial rainfall. The insured sought to recover these expenses under their policy.

The primary legal issues before the Court of Appeal were whether the expenses incurred by the insured were recoverable under the "temporary protection extension" of the policy, specifically as expenses deemed necessary by the insured to avoid further loss or damage to insured property. Additionally, the court had to determine if the expenses were recoverable under the general insuring clause or an implied term that would indemnify the insured for expenses reasonably incurred to avoid insured loss, damage, or liability. The court also considered whether the expenses fell within an exclusion for "dewatering operations."

The Court of Appeal allowed the appeal in part, setting aside earlier orders made by the District Court. The court reasoned that while the expenses were not recoverable under the temporary protection extension, a portion of the claimed amount was recoverable. The court directed the parties to calculate pre-judgment interest on $250,000 up to a specified date and to prepare a consent order for judgment in favour of the insured for that amount plus interest. The court also reserved the question of costs for further written submissions.