The Federal Court has dismissed an insurance claim over a roof collapse at Sydney Entertainment Centre in 2016.

Rosenlund Constructions sued the Lloyd’s underwriters that insured contractor H Hassarati & Co when the roof fell in during demolition work.

The underwriters rejected the claim because their policy excluded loss caused by the insured rendering, or failing to render, professional advice.

In suing the insurers, Rosenlund contended Hassarati’s liability did not arise out of giving professional advice or service, and that the advice or service was provided by Grasso Consulting Engineers, the structural engineer hired by Hassarati to advise on the demolition.

But in ruling against Rosenlund, Justice Ian Jackman says Hassarati warranted Grasso’s designs, undertook to carry out the design with a degree of professional skill, care and diligence expected of a subcontractor, and remained wholly responsible for the designs as if they were Hassarati’s own.

Hassarati’s role was not merely to pass on Grasso’s advice, but to apply its own skill in ensuring the instructions to Rosenlund were fit for purpose.

Its conduct fell within the professional advice or services Hassarati’s subcontract required.

Hassarati’s liability was established by the NSW District Court in March 2024, with damages and interest set at $1 million. Months later, Hassarati was deregistered.

The roof of the centre, now known as Qantas Credit Union Arena, collapsed onto the cabin of an excavator being operated by a Rosenlund employee.

The excavator and a demolition boom fitted to it were damaged beyond economic repair.

A Rosenlund employee had raised concerns about the demolition plan and warned of roof collapse, the court heard.

Read the judgment here.