In the Sleight v Beckia Holdings Ltd & ors  NZHC 456 judgment about costs and interest Gendall J ordered IAG to pay interest at 5% pa from June 2015 under s87 of the Judicature Act 1908 on the costs to repair the Sleights’ house at 24 Kinnaird Place, Christchurch. He ordered interest from the date that IAG was made aware that its original earthquake repairs were defective in June 2015. He awarded interest on the cost of the repairs as quantified in mid/late 2020. Homeowners with failed earthquake repairs ought to seek interest from when EQC/Insurer should have know about the problem. As the Sleights commenced the proceeding pre […]
In Bruce & ors v IAG New Zealand Ltd & ors  NZHC 3051 the High Court ordered IAG to pay costs of $83,179 and disbursements of $121,899 to the Bruces subsequent to the High Court judgment in Bruce & ors v IAG New Zealand Ltd  NZHC 3444. IAG argued that the Bruces were not successful and in fact IAG had been successful. Mallon J disagreed and said that the Bruces were the successful party for the purposes of assessing costs. IAG delayed admitting defects, lost trial issues and ended up paying more than it had ever previously offered.
The High Court in Sleight v Beckia Holdings Ltd (in liq) & ors  NZHC 2851 has found all defendants liable for $389,848 being the costs to repair an earthquake damaged house at 24 Kinnaird Place, Christchurch to the policy standard of “when new”. IAG insured the earthquake damaged house. IAG purported to repair the house as part of its managed repair programme with Hawkins as the project manager. Hawkins, now in liquidation, was insured by QBE. Farrells, now known as Beckia, was the builder that did the repairs. The house was defectively repaired. The build contract for the repairs was between Sleight and Farrells, but it referred to IAG […]
Owners of 12 units at 152 and 160 Salisbury St, Christchurch sued Vero Insurance seeking a declaration from the High Court that by reason of earthquake damage they were entitled to have the buildings rebuilt under their Vero insurance policy. Vero said the buildings could be repaired to meet the policy standard of”when new”. The High Court released its judgment in Body Corporate 335089 v Vero Insurance New Zealand Ltd  NZHC 2353 on 10 September 2020 more than a year after court hearing finished. The evidence for the owners failed to prove more than minimal earthquake damage by cracking and minor floor level changes. The argument that because the […]
The recent High Court judgment 15 September 2020 in the UK test case of The Financial Market Authority v Arch Insurance (UK) Ltd & ors  EWHC 2448 (Comm) is all bad for insurers of business interruption insurance claims in NZ. It says that disease extensions provide cover as do some Government authority extensions, but most importantly it says that the case of Orient-Express Hotels Limited -v- Assicurazioni Generali S.p.A.  EWHC 1186 (Comm) that insurers rely on to limit liability is wrong. FCA is the regulator of the insurers in the UK. It brought a test case on various specimen wordings by underwriters of business interruption insurance arising in […]