Insurance Law

The Erect Safe ‘Defense’ Continues to Slip

Contact: Rebecca Stevens, Partner and Allison Bailey, Senior Associate; Carter Newell (Queensland, Australia)

Following on from the New South Wales Court of Appeal decision in GIO General Limited v Centennial Newstan Pty Ltd1 in which the Court found an indemnity and insurance clause in a contract in the ‘Erect Safe’ mould operated to provide indemnity to a principal,2 the decision of Jackson v McDonald’s Australia3 follows that line of reasoning in that the principal extension clause was activated to cover a contractual indemnity in a contract between McDonald’s Australia (McDonald’s) and one of its cleaning contractors.

 

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