Allianz Australia Insurance Limited v Delor Vue Apartments CTS 39788

A recent decision by the High Court provides clarity regarding the scope of an insurer’s duty of utmost good faith.

In the Delor Vue judgment, the Court found Allianz had the right to reduce its liability under the insurance contract and that its earlier waiver was revocable. The decision also clarifies that an insured seeking to establish that an insurer cannot resile from a gratuitous waiver needs to establish prejudice.

In this case alert, partner Andrew Moore, special counsel Marcus Saw and graduate Nathan Hedges explain why this decision is good news for insurers.