In Bruce & ors v IAG New Zealand Ltd  3444 the High Court (Mallon J) decided that IAG had not complied with its obligations to reinstate the earthquake damaged house to “as when new”. So it is liable to pay the costs of reinstating the house and/or loss in value of the house by reason of certain defects. Quantum is to be determined at a later hearing. IAG originally spent about $1.4M to rebuild the foundation, but post work the floor level differential was 46mm and there were 8 areas with slopes of more than .5%. The Court confirmed that where an insurer elects to repair that the policy becomes a repair contract and the insurer is liable in damages. The standard of repair was to be an equal condition as it was when it was built in 2006. The owners claimed general damages for distress, inconvenience and mental anguish caused by IAG’s conduct. IAG said that general damages are not available in New Zealand for breach of an insurance obligation. The Court found that the Bruces’ were entitled to general damages that were to be quantified at a later hearing.
0 0 Grant Shand Grant Shand2019-02-19 01:43:162019-02-19 01:43:16IAG liable for defective earthquake repairs