Insurance in MOtion September 2025

Welcome to Insurance in MOtion! We're excited to share the latest insights and updates with you.
September 2 2025

Supreme Court Denies Application Seeking Leave to Claim Against Third Party Insurer After Contractor Is Placed Into Liquidation

374, 376 New South Head Road Pty Ltd v SMLXL Projects (NSW) Pty Ltd [2025] NSWSC 886

By Stephen Aroney, Partner and Leon Chen, Associate

In 374, 376 New South Head Road Pty Ltd v SMLXL Projects (NSW) Pty Ltd [2025] NSWSC 886, William J held that the Developer failed to establish an arguable case the Contractor. The Contractor had been placed into liquidation less than a week after the expired. The Developer claimed that its losses would have been have been indemnified by the Contractor’s insurer. However, the Court found no basis for that claim. This decision highlights the strict hurdles facing third party claims under the Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW).

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Full Court of the Federal Court of Australia Confirms That “If Anything Changes While You’re Insured With Us” Is Not an Unfair Contract Term

ASIC v Auto & General Insurance Company Limited [2024] FCA 272 and ASIC v Auto & General Insurance Company Limited [2025] FCAFC 76

By Adrian Papaianni, Partner and Leon Chen, Associate

In a significant decision for insurers and policyholders alike, the Full Court of the Federal Court of Australia has unanimously ruled that a home and contents insurance clause requiring customers to notify their insurer “if anything changes while you’re insured with us” (the Notification Clause) is not an unfair contract term under the regime (specifically, in section 12BG of the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act)).

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Serious Injury, Serious Hurdles: Negligence Claim Falls Short in SA Court

Toon v Central Adelaide Local Health Network [2025] SADC98

By Bronwyn Ackland, Partner and Will Hudson, Associate

The recent decision in Toon v Central Adelaide Local Health Network [2025] SADC 98 required the District Court of South Australia to consider allegations of negligence in the context of emergency surgical treatment provided at a public hospital. The matter raised critical questions about standard of care, breach, causation, and the evidentiary threshold required under the Civil Liability Act 1936 (SA) (CLA).

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The Federal Court Was Asked to Determine Which Policy Retention Should Apply Where There Are Multiple Claims From a Common Source 

Nuix Limited v Berkshire Hathaway Speciality Insurance Company [2025] FCA 1002

By David Slatyer, Partner and Tyra Zacka, Paralegal

Nuix Limited sought indemnity under two insurance policies, being their Public Offering of Securities Insurance  and Directors & Officers Liability Insurance. The indemnity sought was in relation to ASIC investigations and class actions following Nuix’s 2020 Initial Public Offering. This dispute before the Federal Court of Australia concerned the retention amount applicable to multiple related claims which are aggregated under clause 5.5 of the policies.

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Caution Thrown to the Wind: Apportionment of Liability for Personal Injury Claim

Mason-Leonarder v Balfran Removals Pty Ltd & Anor (No2) [2025] ACTSC 363

By Lisa Quilty, Partner and Nyah Gray, Paralegal

This matter raised the question of how liability should be apportioned between the First Defendant, the Plaintiff’s employer and the Second Defendant, the occupier of the premises on which the Plaintiff was sent to work. After several days of hearing, the First and Second Defendants reached a settlement with the Plaintiff, consenting to verdict in the Plaintiff’s favour in order of $1,271,287.73. In this matter before the ACT Supreme Court, the Court had to determine the contribution of the respective Defendants to the Plaintiff’s injury.

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