In the recent decision in Van Limburg v EQC & Tower Insurance Ltd  NZHC on 18 March 2014 the High Court (Kos J ) decided that the High Court did not have the ability to award interest under s87 of the Judicature Act 1908 against EQC for EQC’s delayed payment of its cap liability because there was no judgment against EQC. This is a decision contrary to common sense. The position is to be clarified by the Judicature Modernisation Bill currently before Parliament where s450 provides that the Court can order the payment of interest where the amount of the claim is paid after the commencement of the proceedings but before any Court judgment. It is expected that the High Court will also award costs against EQC now that the proceeding has been discontinued as EQC only paid its cap liability after the commencement of the court proceedings against EQC.
0 0 Grant Shand Grant Shand2014-03-29 01:32:362015-09-17 10:42:28EQC late payment & Interest