A Goninan & Co Ltd v Direct Engineering Services Pty Ltd [No 2]

[2008] WASCA 112

Western Australia Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Contract
2. › Construction of written contracts
3. › Building contract
4. › Insurance obligations of head contractor
5. › Whether obligation to insure extended to subcontractors
6. › Ambiguous clause
7. › Deletion of clauses from standard form contract as aid to construction
1. Insurance
2. › Liability insurance
3. › Insured persons under policy
4. › Extension of cover to subcontractors
5. › Whether head contractor 'in writing obliged to provide insurance' to subcontractor
6. › Right of subrogation
7. › Whether insurer entitled to exercise subrogation against co-insured
1. Contract
2. › Construction of written contracts
3. › Standard form contracts
4. › Whether deletion of clauses from standard form may be referred to as aid to construction of ambiguous clause in concluded agreement

Quick Take

Where a standard form building contract is amended to delete a clause requiring the proprietor to arrange insurance in the names of the proprietor, contractor and subcontractors, and a new clause is inserted requiring the contractor to effect public liability and property damage insurance covering 'all claims and liabilities', the contractor's obligation extends to obtaining insurance covering the liability of its subcontractors. An insurance policy provision extending cover to persons 'to whom the Insured is in writing obliged to provide insurance' does not require a direct contractual relationship between the insured and the person to be covered; it is satisfied where the obligation to provide insurance arises under a contract with a third party.