Zhang v Minox Securities Pty Ltd

The dispute in *Zhang v Minox Securities Pty Ltd* concerned an application for leave to commence proceedings against an insurer. The claimants sought to enforce their rights under a professional indemnity policy. The matter came before the Court of Appeal of New South Wales, with judgment delivered by Hodgson JA, Macfarlan JA, and Handley AJA.

The primary legal issues before the Court of Appeal were whether the claimants had an arguable case to commence proceedings against the insurer, QBE Insurance (Australia) Ltd, and how an exclusion clause within a composite policy should be construed, particularly whether it denied cover to an innocent employer.

The Court of Appeal allowed the appeal in part. It set aside the orders of the Equity Division and granted the appellants leave to commence proceedings against QBE Insurance (Australia) Ltd to enforce their rights under section 6 of the *Law Reform (Miscellaneous Provisions) Act 1946* in respect of the professional indemnity policy. The appeal was otherwise dismissed, and the respondent was ordered to pay the appellants' costs of the appeal and the proceedings in the Equity Division.