Novotel, Warner’s Hotel/Bar & Insurance

In Crystal Imports Ltd v Allianz New Zealand Ltd & anor [2013] NZHC 2566 the High Court considered an insurance policy dispute between the owners of the Warner’s Building at 50-52 Cathedral Square, Crystal Imports Ltd, and the owners of the Novotel (Accor) which leased part of the Warner’s Building and operated the Warner’s Hotel.  Warner’s Hotel was insured by Allianz for 2011 under Accor’s 2011 insurance policy with Crystal noted on the schedule of insured.  The building was damaged in the 22 February 2011 earthquake and demolished in October 2011.  Crystal lodged a claim under the Allianz policy for its interest in the building.  It appears that the insurance cover was insufficient to reinstate the building. Accor denied that Crystal was covered under the Alianz insurance policy.  The Court decided that Crystal was an insured under the 2011 insurance policy and in any event Accor was estopped from denying the Crystal interest in the insurance policy by its conduct.