Event and Time
Event Description
The case involves CIMIC (formerly Leighton Holdings Limited) suing its two sets of Directors and Officers (D&O) insurers for claims related to legal costs arising from investigations and litigation associated with alleged bribery of foreign officials. The primary focus is on declarations of liability and indemnities under specific insurance policies for the years in question.
Application and Claims
CIMIC claims:
- A declaration that the 2011 Insurers (AIG, Chubb, Catlin Syndicate, Catlin Australia, Liberty) are severally liable for insuring against costs incurred during investigations of corruption allegations.
- Damages for the 2011 Insurers' failure to indemnify CIMIC for these costs, along with statutory interest under sections of the Insurance Contracts Act 1984 (Cth).
- An alternative claim against Chubb under the 2013 Primary Policy for some specified costs.
CIMIC asserts that there has been a continuous relationship among the various insurance policies, which should permit claims to proceed regardless of the timing of allegations or notifications.
Judicial Decisions
The court directed the parties to confer and provide agreed short minutes of order to implement the ruling and costs orders within 7 days. If the parties cannot agree, competing short minutes and submissions are to be filed within 10 days, and liberty to apply is granted on 24 hours’ notice.
Dispute Points and Legal Basis
Dispute Points
- CIMIC's Position:
- Claims entitlement to coverage for expenses under the 2011 Policy, asserting the costs were incurred in a reasonable settlement of claims. - Challenges the interpretation of multiple clauses in insurance policies, especially regarding non-disclosure and continuity of coverage. - Aims for a declaration concerning the awareness state during the 2010/11 Policy Period regarding allegations, which is crucial for securing a potential future indemnity.