A triumph for clear drafting – Court of Appeal refuses to imply a reasonable care standard to an absolute compliance condition
- Tuesday, October 2, 2018
Authors: Michael Bath, Partner & Wendy Bure, Senior Associate
It is often argued that, where an insurance policy requires an insured to comply with a statute or Australian Standard, an insured need do no more than take ‘reasonable care’ to comply. Our previous newsletter discussed WFI Insurance Ltd v Manitowoq Platinum Pty Ltd  WADC 89 where the implication of such a term was accepted. However earlier this year the Court of Appeal in WFI Insurance Ltd v Manitowoq Platinum Pty Ltd  WASCA 89 overturned that decision finding that, in the context of the policy in question, absent express words, it was not reasonable or appropriate to imply a reasonableness standard.