Kraal v The Earthquake Commission

[2014] NZHC 866

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV 2013-409-990 [2014] NZHC 866

UNDER

the Declaratory Judgments Act 1908

BETWEEN

HELEN KRAAL and BRUCE ROBERTSON IRVINE Plaintiffs

AND

THE EARTHQUAKE COMMISSION First Defendant

ALLIANZ NEW ZEALAND LIMITED Second Defendant

Hearing:	11-13 November 2013
Counsel:	C R Johnstone and G H Nation for the Plaintiffs J Knight and N Bruce-Smith for the First Defendant I Thain and K Pengelly for the Second Defendant
Judgment:	30 April 2014

JUDGMENT OF MALLON J (Result judgment)

[1]      The plaintiffs seek declarations that in the circumstances of the direct and continuing threat of further physical damage or destruction from rockfall hazards on Richmond  Hill,  and  pursuant  to  the  s 124  notice  issued  and  affixed  by  the Christchurch City Council to the plaintiffs’ house, which deprives the plaintiffs of the possession and use for residential purposes of their house and insured property at

119 Wakefield Avenue, Sumner, such loss constitutes:

(a)       ‘natural disaster damage’ under s 18 of the Earthquake Commission

Act 1993, for which the first defendant is liable to pay to the plaintiffs the replacement value of the insured ‘residential buildings’, to the

KRAAL v THE EARTHQUAKE COMMISSION [2014] NZHC 866 [30 April 2014]

extent  of  the  statutory  limit,  or  limits,  applying  for  the  2011 earthquake events; and

(b)‘damage’ for  which  the  second  defendant  is  liable  to  pay  to  the plaintiffs, the difference between the EQC payments made or payable, in respect of the 2011 earthquakes, and the costs of rebuilding the insured property at 119 Wakefield Avenue, Sumner.

[2]      For  reasons  to  be  given  shortly the  application  for  those  declarations  is dismissed.

[3]      Following the release of the reasons, if costs are sought by any party, the parties are to submit brief memoranda confined to any specific costs issue that is in dispute.

Mallon J