Excavator digs itself into a deep hole with respect to property loss

The decision from Delta Pty Ltd v Mechanical and Construction Insurance Pty Ltd [2019] QCA 62 highlights the subtle yet important difference between liability for causing harm and liability for defective performance of a contract resulting in economic loss. Also highlighted is that issues surrounding the formulation of a settlement are complex and caution must be exercised when parties are considering a Settlement Deed. Finally, the case is a reminder that a prudent step for a principal contractor is to undertake thorough due diligence to ensure that any sub-contractors have appropriate insurance cover for the nature and scope of the project being embarked upon.

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