CGU Insurance Ltd v Porthouse

[2008] HCA 30; (2008) 235 CLR 103. A unanimous High Court held in favour of the insurer CGU: the professional-indemnity policy's 'Known Circumstances' exclusion applied because, on an objective test, a reasonable barrister in Porthouse's professional position would have been aware of circumstances that could give rise to a claim. Section 54 of the Insurance Contracts Act 1984 (Cth) did NOT operate to prevent CGU relying on the exclusion. The insured was therefore not covered.