DELTA PTY LTD V MECHANICAL AND CONSTRUCTION INSURANCE PTY LTD

[2019] QCA 62, Queensland Court of Appeal, Justice of Appeal Fraser, Justice of Appeal McMurdo and Justice Flanagan, 12 April 2019

Insurance (liability) - Settlement and assignment of insurance claims - Whether assured faced liability - Meaning of "property damage" - Mitigation costs - Reasonable care clause - Limitation period for insurance claims

The Queensland Investment Corporation (QIC) entered into a contract whereby Delta undertook excavation works at QIC's site in Brisbane. Delta engaged Team Rock Anchors Pty Ltd (TRA) to secure the retaining walls for the basement excavation. TRA was insured by Mecon under a liability policy under which TRA was to receive an indemnity for liability for property damage, defined as physical loss or damage. There was also a reasonable care clause. There was separate cover for "costs incurred by you for temporary protective repairs undertaken to prevent any immediate threat of Property Loss". There was also cover for "principals and subcontractors who are not otherwise insured".