Event and Time
Event Description
On February 17, 2017, a bushfire broke out in Carwoola, New South Wales, affecting an area of approximately 3500 hectares. The fire originated from sparks produced by a Husqvarna K970 power cutter while it was being used by employees of APD, executed by Mr. Elliott and Mr. Orford, during the installation of reinforcing steel as part of residential building works.
Application and Claims
Ms. Ritchie, on behalf of herself and group members, initiated legal proceedings against APD for the losses incurred due to the bushfire. Following APD's liquidation, the claim was directed against their liability insurer, CGU, under sections 4 and 5 of the Third Party Claims Act, alleging that CGU was liable for indemnity against APD given the events leading to the bushfire.
Judicial Decisions
- The court granted leave to appeal.
- The appeal was subsequently dismissed.
- Ms. Ritchie was ordered to pay the respondent’s costs.
Dispute Points and Legal Basis
Dispute Points
- Claim by Ms. Ritchie and Group Members:
- Allegation of negligence by APD’s employees leading to the bushfire. - Claim for damages due to property loss and personal injury resulting from the bushfire.
- Defense by CGU:
- Denial of indemnity based on the policy exclusions, specifically related to "spark producing equipment." - Argued that the bushfire was not an "occurrence" related to APD’s "business" as defined in the insurance policy.
- Primary Judge's Findings:
- The primary judge found that the power cutter was within the description of "spark producing equipment" and dismissed CGU’s arguments regarding the relationship to APD's business.