The claims process: the role of utmost good faith

In England, the principle of utmost good faith is not an implied contractual term but rather informs the actual agreement between the parties and their conduct in carrying it out. In Diamond World Jewellers Pty Ltd v Catlin Australia Pty Ltd [2021] NSWSC 1431 the New South Wales Supreme Court has shown how utmost good faith can affect both parties in the claims process. Ultimately the fact that utmost good faith took effect as an implied term rather than a principle of construction did not affect the outcome of the case, and it is almost certain that the same result would have been reached in England.

Diamond World : the insurance