Ermelinda Kovacs, led by Michael Jones SC and instructed by Norton Rose Fulbright Australia, successfully appeared for Tokio Marine, Lloyd’s Syndicate 4000, HDI Global and Hamilton Insurance in the recent decision of Justice Ball in DTZ Worldwide Limited v AIG Australia Limited [2025] NSWSC 12. The Court dismissed DTZ’s claim.

DTZ had entered into a share sale agreement for the purchase of securities of entities comprising a property services business for $1.215 billion. DTZ claimed that by reason of alleged breaches of certain warranties in the share sale agreement, it suffered loss of $234 million within the meaning of warranty & indemnity insurance policies with the defendant insurers, together forming a tower of insurance.

The warranties concerned, amongst other matters, the accuracy of the management accounts of target group entities the subject of the share sale agreement.

His Honour found that the management accounts did not contain the errors alleged by DTZ.

Shortly before the hearing, DTZ settled its claim against the primary insurer on terms that involved an admission of liability by that insurer.

The decision may be found here.