Wiesac Pty Ltd v Insurance Australia Limited

Wiesac Pty Ltd v Insurance Australia Limited concerned a property in the Brisbane CBD affected by the 2011 Brisbane floods. The plaintiffs sought damages under a property and pecuniary loss insurance policy but were denied due to an exclusion clause for flood damage. The basement of the insured premises was inundated by water through drainage pipes, which the policy defined as "the inundation of normally dry land water escaping or released from the normal confines of any natural water course or lake." The central issue was whether the basement constituted "normally dry land" and whether the water was "escaping" from the river's normal confines. The court examined the definition of "escape" and concluded that water must still be in the act of escaping to trigger the exclusion clause. Since river water entered the subterranean soils and basement, pushing groundwater into the basement, the exclusion applied. The court also noted that while local runoff entering the basement was not flood damage, it was still excluded if forced in by river water. Regarding the business interruption claim, the court found that the policy provided for consequential loss, but the method for calculating the indemnity was unavailable due to missing evidence. The court admitted certain emails as evidence and dismissed the plaintiffs' claims, reserving the issue of costs for later determination.