6 June 2019
ACCRUAL OF THE CAUSE OF ACTION UNDER A PROPERTY POLICY: Globe Church Incorporated v Allianz Australia Insurance Ltd & Anr  NSWCA 27
In Globe Church Incorporated v Allianz Australia Insurance Ltd & Anr  NSWCA 27 the majority of the New South Wales Court of Appeal determined that a claim arising from an insurers’ refusal to indemnify the insured in respect of property damage accrued when the damage was sustained and not upon declinature. In doing so, it followed both other Australian intermediate appellate authorities and the established, if not greatly admired, English position. However, the dissenting minority mounted a powerful attack on the ‘legal fiction’ underpinning this approach.
The Court’s decision is considered by Nicholas Davidson QC and Miles Harris of 4 New Square.