Firm PI 1 Limited v Zurich Australian Insurance Limited and Body Corporate 398983 - SC 141/2013

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Summary

Civil Appeal – Insurance – Earthquake Commission Act 1993 – Whether the Court of Appeal erred in finding that the clause in the insurance policy providing that the respondent’s liability would be limited to the amount of loss in excess of the cover under the Earthquake Commission Act limited the respondent’s liability for natural disaster damage from a single event to the difference between the maximum cover under the Act and the sum insured.[2013] NZCA 560  CA 3933/2013

Result

The application for leave to appeal is granted.

The question is whether the sum insured for buildings under the material damage section of the contract of insurance is inclusive or exclusive of sums payable to the insured by the Earthquake Commission under the Earthquake Commission Act 1993 for natural disaster damage to the insured’s buildings from the 22 February 2011 earthquake.

17 March 2014
__________________________
The appeal is dismissed.
The appellant must pay the first respondent costs of $25,000 plus reasonable disbursements.  We certify for two counsel.

15 October 2014

Related Documents

Substantive judgment — FIRM PI 1 LIMITED v ZURICH AUSTRALIAN INSURANCE LIMITED T/A ZURICH NEW ZEALAND [2014] NZSC 147 [15 October 2014] (PDF 240 KB)

Leave judgment - leave granted — FIRM PI 1 LIMITED v ZURICH AUSTRALIAN INSURANCE LIMITED T/A ZURICH NEW ZEALAND LIMITED [2014] NZSC 19 [17 March 2014 (PDF 36 KB)

Additional Information

Transcript

Hearing date : 3 July 2014

Elias CJ, McGrath, William Young, Glazebrook,  Arnold   JJ.