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Insurance Assignment – Indemnity only

In Xu & anor v IAG New Zealand Ltd [2018] NZCA 149 the Court of Appeal confirmed the High Court decision that under the insurance policy the reinstatement right under the policy was not transferable to a subsequent owner.  It was personal right that could not be assigned.  Because the original insured did not reinstate the house before selling it to the current owner there was no right to reinstatement costs.  Xu received indemnity value only.  The Court of Appeal followed its previous decision in Bryant.  It is now likely that Xu will try to have the Supreme Court consider the issue.  This judgment affects subsequent owners that may have bought […]

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Myall v Tower Insurance – no further appeal

The Supreme Court in Myall  v Tower Insurance Ltd [2018] NZSC 35 has refused an application by Mr Myall for leave to appeal the Court of Appeal decision about professional fees on a house rebuild and the apportionment of the rebuild cost based on under insurance.  It said that notwithstanding obvious errors by the High Court and Court of Appeal there was no question of general or public importance.

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EQC ordered to pay 75% of legal costs

In Deo Gratias Developments Ltd v Tower Insurance Ltd & anor [2018] NZHC 767 the High Court (Osborne AJ) ordered EQC to pay 75% of the legal costs and disbursements a homeowner incurred in Court proceedings against EQC and the insurer where EQC paid cap after being sued and the insurer settled the claim one month after EQC paid cap.  In the three other proceedings considered in the judgment the Court ordered EQC to pay 50%.  EQC had argued that 50% was its maximum liability.  The closer the insurer settlement is to the cap payment the greater % of costs EQC ought to pay.

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Earthquake Claim Limitation – IAG & Southern Response

Here is a short video I did about the limitation act(s) applying to earthquake claims and the extended limitation period(s) that apply to claims against IAG and Southern Response.  For IAG it is 30 June 2018 and Southern Response it is 3 September 2018.