On Friday, 31 July 2026, the NSW Court of Appeal handed down judgment in Seymour Whyte Constructions Pty Limited v Liberty Mutual Insurance Company t/as Liberty Specialty Markets [2026] NSWCA 154. Stuart Donaldson SC and Ermelinda Kovacs, instructed by Carter Newell, appeared for the successful Respondent.

The decision concerns the construction of a Contractor’s Pollution Legal Liability Policy issued by Respondent. Under the Policy, the Respondent agreed to pay those sums the Appellant became legally obliged to pay for “Loss arising from Pollution Conditions caused by Covered Operations performed by” the Appellant.

The Court dismissed the appeal with costs. Justices Payne, Ball and Free held that the significant costs incurred by the Appellant did not “arise from” Pollution Conditions with the meaning of the Policy. The Court stated that conclusion is entirely consistent with the purpose of the Policy when it is properly understood.

A copy of the judgment may be found here: https://www.caselaw.nsw.gov.au/decision/19f6d9a51beed92bbc192cdb