WFI Insurance Ltd v Manitowoq Platinum Pty Ltd

The case involved a dispute between WFI Insurance Ltd, the insurer, and Manitowoq Platinum Pty Ltd, the insured. The insured claimed for a loss under a business liability policy. The insurer denied the claim, arguing that the insured had breached a condition in the policy requiring compliance with legislation and Australian Standards. The court had to determine whether the condition was qualified by an obligation to take reasonable care, whether the condition was only breached by reckless conduct, and whether the breach entitled the insurer to deny indemnity. The court found that the condition was not qualified by an obligation to take reasonable care, and that the breach of the condition by the insured entitled the insurer to deny indemnity.

The court considered the policy wording, which required the insured to comply with all legislation and Australian Standards. The court found that the policy did not impose an obligation on the insured to take reasonable care, as this was not expressly stated in the policy. The court also found that the breach of the condition was not limited to reckless conduct, as the condition was breached by any failure to comply with legislation or Australian Standards. The court held that the breach of the condition entitled the insurer to deny indemnity, as the policy provided that any breach of the condition would entitle the insurer to avoid the policy. The court further held that the insurer was not required to prove that the breach caused the loss, as the policy provided that the insurer could avoid the policy on the basis of any breach of the condition.