In Bruce & ors v IAG New Zealand Ltd [2019] NZCA 590 the Court of Appeal allowed the homeowners’ appeal and dismissed the IAG cross appeal in a case about IAG’s post earthquake remedial work. IAG elected to repair the house and spent $1.4M doing so. IAG’s engaged builder, Jim the Builder, did not repair the house so that it was “as when new”. At issue at trial were the floor levels, wall verticality and internal finishes. The High Court Judge, Mallon J, found that IAG had not restored to the three items to the policy standard, but puported to limit the remedy available to the homeowners. The Court of Appeal set aside the limits on recovery and dismissed the cross appeal about the lack of damage by wall leans. There is to be a second hearing about remediation and cost of remediation. This case is important for its finding that IAG is liable for the defaults of its builder when IAG elected to repair the house.
Auckland
PO Box 137243,
Parnell, 1052
Tel: +64 27 434 5489
grant@grantshand.co.nz