Eric Meserve Houghton v AIG Insurance Limited and TEC Saunders and others - SC 21/2013
Summary
Civil Appeal – Law Reform Act 1936, s 9 – Charge on insurance monies in favour of third parties paid to indemnify an insured in respect of insured’s liability to third party – Priority between a s 9 charge in favour of third party claimants and an uncharged claim to defence costs by directors of a company – Whether Court of Appeal erred in holding that a s 9 charge only attaches to the balance of the insurance money available to meet third party claims after any defence cost liability has been met – Whether question of priorities under s 9 is subject to contract of insurance ¬– Whether Court of Appeal erred in deciding that the outcome of the Steigrad appeal (on appeal SC 19/2013) would dictate the outcome of this appeal. [2012] NZCA 604 CA 841/2011
Result
The appeal is allowed. The Court of Appeal’ s declaration in SC 21/2013 is set aside.
The respondents are to pay, jointly and severally, costs of $25,000 to the appellants in SC 21/2013 (to be set by the Registrar, if necessary). We certify for two counsel.
23 December 2013.
The respondents are to pay, jointly and severally, costs of $25,000 to the appellants in SC 21/2013 (to be set by the Registrar, if necessary). We certify for two counsel.
23 December 2013.
Additional Information
A Leave to appeal is granted.
B The approved ground is:
Did the Court of Appeal interpret s 9 of the Law Reform Act 1936 correctly?
15 April 2013.
17 October 2013
Elias CJ, McGrath, Glazebrook, Gault, Anderson JJ.