Self-Realization Mediation and Health Centre Charitable Trust (New Zealand) v IAG New Zealand Limited

The plaintiff, Self-Realization Meditation and Healing Centre Charitable Trust (New Zealand), brought an action against the defendant, IAG New Zealand Limited, seeking damages for earthquake damage to two properties. The plaintiff claims that IAG failed to agree to reinstate the property or to pay indemnity value. IAG, in turn, issued third party notices against various parties, including building companies, to avoid a judgment against it in respect of remediation costs that may have resulted from defective repairs carried out by the builders. Two of the third parties, Onward and Hi Tech, applied to set aside the third party notices, arguing that the claims against them were not sufficiently particularised, there was no complaint by the plaintiff regarding their work, and their involvement would unnecessarily prolong the proceedings. The court considered the principles governing the setting aside of third party notices and found that the applications should be granted. The court found that the plaintiff's claim against IAG was focused on the contractual responsibilities of the insurer, and there was a significant risk that Onward and Hi Tech would be idly involved in the trial if the third party notices were not set aside. The court also found that IAG could pursue any claims it may have against Onward and Hi Tech in separate proceedings if necessary. The court set aside the third party notices issued to Onward and Hi Tech, and costs were reserved.