A dispute about expert reports on flooding in Queensland 11 years ago has been resolved, with a court finding against several insurers.

The NSW Supreme Court has ordered Zurich UK, Great Lakes Reinsurance UK and Scor UK to pay Acciona Instructure $2.1 million.

The dispute was earlier sent to a referee, but the insurers argued they were denied procedural fairness and the referee failed to give adequate reasons for his decision.  

Judge Elisabeth Peden had to determine what parts of the referee’s reports should be adopted, varied or rejected, and the sum of a judgment and interest.

She accepts the referee’s reports and rejects the complaint about adequate reasons.  

Acciona was working on an upgrade to the Bruce Highway in 2015 when severe weather damage forced it to claim on its policy.

The insurers accepted that the policy responded to some of the damage but rejected costs for work on an embankment.

Acciona claimed the embankment was damaged by saturation, but the insurers said it was due to defective road fill.  

The court ordered referral to a senior counsel, and a four-day hearing in March last year was provided with 10,500 pages of material. Acciona tendered a geotechnical engineer’s report and other expert findings.

The insurers complained – and the referee found they were entitled to object – that they were not aware of the specific way Acciona would use the expert reports.  

But the referee found Acciona could rely on the reports to prove damage to the embankment.

In May last year, the referee delivered his first report, saying the insurers should pay Acciona $2.1 million in damages before interest and costs. A later supplementary report found Acciona was not entitled to interest.

In the latest hearing, Acciona sought an order that the court adopt both reports, except for the rejection of interest.

Read the judgment here.