Laser Battle Heads To The High Court

Illawarra Mercury

Thursday September 29, 2005

By MICHELE TYDD

AN insurance wrangle involving a Warrawong firm and a multi-million-dollar damages claim is headed for the High Court of Australia.

Lasermax Engineering has been locked in a court battle with QBE Insurance since 2002 over a $l.4 million payout for the loss of its state-of-the-art laser machine.

The company lost its case in the Supreme Court but had that decision overturned in the NSW Court of Appeal, paving the way for a damages claim of up to $5 million.

QBE will take the next round of the fight to the High Court tomorrow to seek leave to appeal the latest decision.

The battle erupted when a power pole fire outside Lasermax's Kemblawarra premises caused a massive power surge which melted the machine used to weld, cut and treat materials.

The QBE policy provided cover for damage caused by fire, but it refused to pay out, arguing the power surge and not the fire damaged the laser.

Solicitor Mark McDonald for Lasermax said the win in the Appeals Court was a strong one which gave him confidence the latest move in the High Court would not succeed.

"The Appeals Court judges decided three-nil in our client's favour so we are in a good position," he said.

Riding on the case is a $5 million damages claim including legal costs of up to nearly $300,000.

As a result of the machine loss, Lasermax had to close shop and sack 10 people.

Lasermax partner Bob Urquhart said he had his fingers crossed. "If this fails, my wife and I will lose our house," he said.

Should the High Court reject the application for the appeal, the case is still far from over.

"If it all goes our way we will have to return to the Supreme Court to argue over damages," Mr Urquhart said.

He is now working as a consultant for RailCorp.

Asked if he would ever reopen his Warrawong business, Mr Urquhart said "that would depend how war-damaged I am after this is all finished".

QBE Insurance declined to comment while the matter was still before the courts.

© 2005 Illawarra Mercury

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