Swiss Re International Se v LCA Marrickville Pty Limited (Second COVID-19 insurance test cases)

• Jurisdiction: Australia Federal only
• Judgment Date: 08 October 2021
• Neutral Citation: [2021] FCA 1206
• Court: Federal Court
• Date: 08 October 2021

Federal Court of Australia

Swiss Re International Se v LCA Marrickville Pty Limited (Second COVID-19 insurance test cases) [2021] FCA 1206

File number(s):	NSD 132 of 2021, NSD 133 of 2021 NSD 134 of 2021, NSD 135 of 2021 NSD 136 of 2021, NSD 137 of 2021 NSD 138 of 2021, NSD 144 of 2021 NSD 145 of 2021, NSD 308 of 2021
Judgment of:	JAGOT J
Date of judgment:	8 October 2021
Catchwords:	INSURANCE – business interruption insurance – COVID-19 – test cases – pandemic cover – hybrid clause – prevention of access clause – disease clause – catastrophe clause – competent government or statutory authority – outbreak – occurrence – discovery of an organism – at the premises – within a specified radius of the premises – by order of authority – competent authority – as a result of order of an authority – order – insured peril – causation – proximate cause – uninsured peril – same underlying cause or fortuity – interruption or interference – loss – adjustments – trends in the business – third party payment – indemnity for loss – reduction of loss – interest – utmost good faith. ; STATUTORY INTERPRETATION – s 61A Property Law Act 1958 (Vic) – application to Acts of the Commonwealth – whether Biosecurity Act 2015 (Cth) a re-enactment with modifications of Quarantine Act 1908 (Cth) – s 61A applies to Victorian Acts only – Biosecurity Act 2015 (Cth) not a re-enactment with modifications of Quarantine Act 1908 (Cth). ; STATUTORY INTERPRETATION – s 54(1) of the Insurance Contracts Act 1984 (Cth) – meaning of “some act of the insured or of some other person” – requires some act of a person who – has a relevant connection to the insured or the policy – Director of Human Biosecurity is a stranger to the policy under the Biosecurity Act 2015 (Cth) Director of Human Biosecurity is a stranger to the policy and the insured – s 54(1) does not apply.
Legislation:	Biosecurity Act 2015 (Cth) ss 42, 51, 475, 476, 477(1) Biosecurity (Consequential Amendments and Transitional Provisions) Act 2015 (Cth)Sch 1 Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020 (Cth) ss 5, 6 Coronavirus Economic Response Package (Payments and Benefits) Act 2020 (Cth) Coronavirus Economic Response Package Omnibus (Measures No 2) Act 2020 (Cth) Fair Work Act 2009 (Cth) s 789GA Insurance Contracts Act 1984 (Cth) ss 13(1), 14(1), 37, 54, 57, 71 Judiciary Act 1903 (Cth) s 79 National Health Security Act 2007 (Cth) s 11 Quarantine Act 1908 (Cth) ss 2B(1), 2B(2), 4, 13(1)(ca), 35A Appropriation Bill (No. 5) 2019-20 (Cth) Appropriation Bill (No. 6) 2019-20 (Cth) Biosecurity (Consequential Amendments and Transitional Provisions) Bill 2014 (Cth) Coronavirus Economic Response Package Omnibus (Measures No. 2) Bill 2020 (Cth) Explanatory Memorandum, Biosecurity Bill 2014 (Cth) Explanatory Memorandum, Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Bill 2020 (Cth) ; Government Sector Finance Act 2018 (NSW) s 5.7 Health Practitioner Regulation National Law (NSW) ss 11, 23-25, 31, 31A, 32, 35, 41, 41B-41D Public Health Act 2010 (NSW) ss 7, 81, Sch 2 ; Human Rights Act 2019 (Qld) s 38 Public Health Act 2005 (Qld) ss 64, 70, 315, 319, 362B, 362D Public Health Regulation 2005 (Qld) University of Queensland Act 1998 (Qld) s 32 ; Acts Interpretation Act 1915 (SA) Emergency Management Act 2004 (SA) ss 3, 23(1), 24A, 25 South Australian Public Health Act 2011 (SA) ss 63, 87, 90 ; Acts Interpretation Act 1890 (Vic) s 27(1) COVID-19 Omnibus (Emergency Measures) Act 2020 (Vic) s 15(4) COVID-19 Omnibus (Emergency Measures) (Commercial Leases and Licences) Regulations 2020 (Vic) Interpretation of Legislation Act 1984 (Vic) ss 4(4), 16, 17, 38 Property Law Act 1958 (Vic) s 61A Public Health and Wellbeing Act 2008 (Vic) ss 198, 199, 200(1)(b), 200(1)(d) Public Health and Wellbeing Regulations 2019 (Vic)
Cases cited:	Antico v Heath Fielding Australia Pty Ltd[1997] HCA 35; (1996) 188 CLR 652 Anti-Doping Rule Violation Panel v XZTT[2013] FCAFC 95; (2013) 214 FCR 40 Australian Casualty Co Ltd v Federico[1986] HCA 32; (1986) 160 CLR 513 Australian Pipe & Tube Pty Ltd v QBE Insurance (Australia) Limited (No 2) [2018] FCA 1450 Australian Securities and Investments Commissioner v TAL Life Limited (No 2)[2021] FCA 193; (2021) 389 ALR 128 Axa Reinsurance (UK) plc v Field[1996] 1 WLR 1026; [1996] 3 All ER 517 Beaufort Developments (NI) Ltd v Gilbert-Ash Ltd[1999] 1 AC 266 Birla Nifty Pty Ltd v International Mining Industry Underwriters Ltd [2013] WASC 386 Board of Trade v Hain Steamship Co Ltd[1929] AC 534 Bonython v Commonwealth[1951] AC 201 Browne v Dunn(1893) 6 R 67 C E Heath Casualty & General Insurance v Grey (1993) 32 NSWLR 25 Cat Media Pty Ltd v Allianz Australia Insurance Ltd[2006] NSWSC 423; (2006) 14 ANZ Ins Cas 61-700 CGU Insurance Ltd v AMP Financial Planning Pty Ltd[2007] HCA 36; (2007) 235 CLR 1 Chapmans Ltd v Australian Stock Exchange Ltd [1996] FCA 474; (1996) 67 FCR 402 Charter Reinsurance Co Ltd v Fagan[1997] AC 313 Commissioner of Taxation (NSW) v Mutton (1988) NSWLR 104 Commonwealth of Australia v Aurora Energy Pty Ltd[2006] FCAFC 148; (2006) 235 ALR 644 Coxe v Employers’ Liability Assurance Corporation[1916] 2 KB 629 Dalby Bio-Refinery Ltd v Allianz Australia Insurance Limited[2019] FCAFC 85 Darlington Futures Ltd v Delco Australia Pty Ltd[1986] HCA 82; (1986) 161 CLR 500 Day v Adam; Ex parte Day [1989] 2 Qd R 9 DRJ v Commissioner of Victims Rights (No 2) (2020) 103 NSWLR 692; [2020] NSWCA 242 East End Real Estate Pty Ltd v CE Health Casualty & General Insurance Ltd (1991) 25 NSWLR 400 Eichmann v Commissioner of Taxation[2020] FCAFC 155 FAI General Insurance Co Ltd v Australian Hospital Care Pty Ltd[2001] HCA 38; (2001) 204 CLR 641 Federal Commissioner of Taxation v Silverton Tramway Company Ltd[1953] HCA 79; (1953) 88 CLR 559 Financial Conduct Authority v Arch Insurance (UK) Ltd[2020] EWHC 2448 (Comm) Financial Conduct Authority v Arch Insurance (UK) Ltd[2021] UKSC 1 George Hudson Ltd v Australian Timber Workers’ Union(1923) 32 CLR 413 Glynn v Margetson & Co[1893] AC 351 Government Insurance Office of New South Wales v RJ Green & Lloyd Pty Limited(1965) 114 CLR 437 Greencapital Aust Pty Ltd v Pasminco Cockle Creek Smelter Pty Ltd[2019] NSWCA 53 Greentree v FAI General Instance [1998] NSWSC 544; (1998) 44 NSWLR 706 Hammer Waste Pty Ltd v QBE Mercantile Mutual Ltd[2002] NSWSC 1006; (2003) 12 ANZ Ins Cas 61-553 Hannover Life Re of Australasia Ltd v Farm Plan Pty Ltd[2001] FCA 796 HDI Global Specialty SE v Wonkana No. 3 Pty Ltd[2020] NSWCA 296 Health Care Complaints Commission v Reid [2018] NSWCATOD 162 Hill v Villawood Sheet Metal Pty Ltd [1970] 2 NSWR 434 HP Mercantile Pty Ltd v Hartnett[2016] NSWCA 342 Hyper Trust Limited t/as the Leopards Town Inn & Ors v FBD Insurance plc[2021] IEHC 78 Hyper Trust Limited t/as the Leopards Town Inn & Ors v FBD Insurance plc (No 2)...