| IN THE COURT OF APPEAL OF NEW ZEALAND |
| CA303/2015 [2015] NZCA 372 |
| BETWEEN | TOWER INSURANCE LIMITED |
| AND | DOMENICO TRUSTEE LIMITED |
| Hearing: | 30 July 2015 |
Court: | Randerson, Heath and Collins JJ |
Counsel: | M C Harris and M H A Ho for Appellant |
Judgment: | 13 August 2015 at 12:30 pm |
JUDGMENT OF THE COURT
AThe appeal is allowed and the High Court judgment is set aside.
BThe cross-appeal is dismissed.
CThe proceeding is remitted to the High Court for rehearing in the light of the judgment of this Court.
D The respondent must pay one set of costs to the appellant for a standard appeal on a Band A basis together with usual disbursements. There is no certification for second counsel.
ECosts in the High Court are to be dealt with in that Court.
____________________________________________________________________
REASONS OF THE COURT
(Given by Randerson J)
Table of Contents
| Para No | |
| Introduction The High Court judgment Was it open on the pleadings for Gendall J to conclude that, by reason of delay on TOWER’s part, it was to be treated as having elected to settle on a cash basis? The Judge’s findings Result | [1] [31] [47] |
Introduction
The respondent (Domenico) owns a residential property on Breezes Road, Christchurch that was damaged beyond economic repair by the major earthquakes in that city in September 2010, February 2011 and June 2011.
The appellant (TOWER) insured the house for its full replacement value. Domenico promptly made claims to the Earthquake Commission (ECQ) and to TOWER to the extent that the cost of repairing the damage exceeded the EQC’s statutory cap.
It was not until 28 February 2013 that the EQC confirmed that the damage to the house and garage on Domenico’s property exceeded the statutory cap. Formal advice of Domenico’s EQC payouts did not come until 26 April 2013 and amounted in total to $132,783.41.
TOWER accepted liability under the policy. On 8 April 2013, it emailed to Domenico’s principal, Mr Da Col, a proposed cash settlement offer of $236,413.20 based on the costs of rebuilding the house.[1] From this sum, it was necessary in terms of the policy to deduct the EQC payments. Domenico did not accept this offer nor an increased offer TOWER made on 18 April 2013 of $254,501.38.[2] Instead, Domenico’s response was to issue proceedings against TOWER in the High Court on 30 April 2013 based on rebuilding costs of $842,392.45.
[1]It made a separate payment to Domenico in August 2012 for the garage and hard landscaping and that is not in issue.
[2]Again, the EQC payments were to be deducted from this sum.
The expert evidence available to TOWER…
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- Case
- [2015] NZCA 372
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