Kitchen v AA Insurance Ltd  NZHC 1902 is the second High Court judgment where the High Court has granted an application to transfer a High Court earthquake proceeding over the objection of the defendant insurance company. In this proceeding the Court transferred the claim notwithstanding that there was a 10 day Court trial scheduled for December 2019. It said that it was in the interests of justice to transfer the claim as court fees would be avoided, there would be no duplication of work, the Tribunal was more flexible and any complexity could be dealt with by the Tribunal.
In Dodds v Southern Response Earthquake Services Ltd  NZHC 2016 the High Court (Gendall J) ordered Southern Response to pay Dodds $178,894.30 plus interest from 23 December 2013 because Southern Response misrepresented the cost to rebuild the house at 9 Errol Lane, Huntsbury damaged in the earthquake on 22 February 2011. Southern Response provided a Detailed Repair/rebuild Analysis to Dodds that excluded demolition, professional fees and contingency that totalled $895,937.78 whilst at the same having a full costing at $1,186,920.75 that it did not provide to Dodds. Dodds entered into a settlement agreement based on the lesser figure. The High Court decided that SR was guilty of misrepresenting the rebuild cost and engaging in misleading and deceptive conduct. It also said that Southern Response breached good faith obligations. The High Court ordered Southern Response to pay the difference in the 2 costings less the cost of demolition that Southern Response paid and some Arrow costs. It did not award general damages.
In Tower Insurance ltd & anor v Nicon Ltd  NZCA 332 the Court of Appeal dismissed Tower’s appeal of a High Court decision that it was obligated to offer demolition work to Nicon where Nicon had done a demolition assessment. Nicon said that it did 1376 assessments, but was only allocated 186 demolition jobs. It claimed lost income of more than $4M from Tower/Stream. The issue was whether a written heads of agreement between Nicon and Stream/Tower was a legally binding contract. Tower said it was not binding. The High Court and Court of Appeal disagreed. There will now be a trial about the amount of money Tower/Stream must pay Nicon for lost demolition work.
Busby v IAG New Zealand Ltd  NZHC 1852 is the first High Court decision on an application by a homeowner to transfer a High Court proceeding to the Canterbury Earthquakes Insurance Tribunal. The Busbys said they were worn out by cost and delay of the Court process. IAG said that the proceeding raised issues about land damage that was not within the jurisdiction of the Tribunal. Lester AJ decided that it was in the interests of justice to transfer the proceeding.
In a puzzling result, Dunningham J in Moore v IAG New Zealand Ltd  NZHC 1549 decided that the earthquakes of 4 September 2010, 22 February 2011 and 13 June 2011 had the same cause and were one event for the purposes of the IAG policy. The effect was that Mr Moore could only recover the total sum insured of $2,500,000 plus gst once notwithstanding there was damage in each event and remediation was in excess of $4M. This is yet another insurer favourable judgment out of the High Court in Christchurch.
Here is the Grant Shand EQC & Insurance Newsletter #22.
In Biggins & anor v Southern Response Earthquake Services Ltd  NZDC 25609 the District Court considered an application by an insured home owner for summary judgment for the cost of a carport that was not included when SR rebuilt the insured’s house. There were also claims for general damages and the owners’ share of liability for a common driveway. The insured house had a carport. The house rebuilt by Southern Response after the earthquakes did not. SR said it was not liable because the cost of a carport was included in the costing for the rebuilt house. Southern Response lost. There were no documents that supported the SR position. SR also lost on the driveway share issue, but avoided a liability for general damages.
Fitzgerald & ors v IAG New Zealand Ltd  NZHC 3447 was a High Court judgment by Gendall J about the repairability of a rubble foundation damaged in earthquake(s). The Fitzgeralds appealed the judgment to the Court of Appeal, but also applied to have Gendall J recall his judgment on the grounds that the Court had relied upon incorrect evidence by IAG’s expert engineer, Craig Lewis, about similar repair strategies being performed on other houses in Christchurch. Apparently one house relied upon by Mr Lewis was TC2 and not TC3 and did not get a building consent as an exemption was granted. In Fitzgerald & ors v IAG New Zealand  NZHC 632 The High Court (Gendall J) dismissed the recall application. The judgment says that it relied on evidence other than from Mr Lewis and expressly referred to the failure to cross examine IAG’s builder who said he had seen the repair done 20 times and evidence from Fitzgerald’s own geotechnical engineer about consent. It also noted it would generally not be appropriate for a Court to recall its judgment once an appeal had been lodged.
In Taylor v Asteron Life Ltd  NZHC 978 the High Court (Cooke J) dismissed a claim by an insured, Peter Taylor, to recover benefits under an income protection policy and upheld the insurer’s claim to recover $371,286.70 in payments made plus interest to be determined. The Court found that Mr Taylor was not totally disabled because he continued to work after his alleged “sickness”. The insurer called as witnesses three employees of Mr Taylor who gave evidence about the extent of Mr Taylor’s work that was far greater than what Mr Taylor said. Documents also contradicted Mr Taylor’s evidence. The Court also found that Mr Taylor was not partially disabled either because any sickness/illness did not affect his work and he actually earned more money after the sickness/illness than he did prior. Mr Taylor also made false statements about work and income that entitled Asteron to avoid/cancel the policy and recover money paid. The judgment is notable for reference to false duplicate sets of accounts for Mr Taylor’s business.
Notwithstanding the success of the Greater Christchurch Claims Resolution Service it appears the Government is proceeding with the establishment of the Canterbury Earthquakes Tribunal. Based on the version of the bill reported from the House on 9 May 2019 the goal is for the Tribunal to exist from 10 June 2019. The Tribunal still cannot deal with “on solds” being houses sold after the relevant earthquake(s). Unlike the GCCRS the decisions of the Tribunal are public. The Tribunal still has restrictions on the ability to award costs.
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