The High Court (Andrew AJ) judgment in Brinsdon v Beazley & anor [2019] NZHC 808 considered an application by an insurance broker (GH Beazley) and insurer (Vero) to strike out the claims brought in Court by JR Brinsdon relating to earthquake damage from earthquakes in 2010 and 2011 on the grounds that they were brought more than 6 years after the relevant events. Mr Brinsdon did not commence proceedings until September 2017. Ms Brinsdon said that she was under-insured as a result of defective advice from Mr Beazley on inception and renewal of policies. The cost to remediate the house on Rutland St, Christhurch far exceeded the total sum cover of $223,143.70 placed. The Court refused to strike out the claims. The Court said that that the defendants had ongoing duties of care to ensure and/or advise about the adequacy of insurance cover. it was at least arguable that the defendants breached duties by failing to disclose that the 2010 policy was subject to a monetary sum insured and they knew Ms Brinsdon was under a misapprehension about the cover. This was sufficient to postpone the limitation period on the grounds of equitable fraud. Separately Ms Brinsdon established a credible case to postpone the limitation period based on late knowledge. So the proceedings continue.
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